Hollywood Shaken as Trump Orders 100% Tariff on All Foreign-Made Films

TEMPO.CO, Jakarta - United States President Donald Trump has announced the imposition of a 100% tariff on all films produced abroad and entering the US market. This policy was announced by Trump through a post on the social media platform Truth Social on Monday, May 5, 2025.

The Movie Industry in America is DYING a very fast death," wrote Trump.

He believes that other countries are currently offering various incentives to attract filmmakers and studios out of the United States. "Hollywood, and many other areas within the U.S.A., are being devastated," he expressed.

Trump views incentives from other countries as a threat to U.S. national security. He referred to it as a coordinated effort that also contains elements of propaganda.

"Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!"

Hollywood, Cannes Wary of Trump’s 100% Tariff on Foreign Films

Trump’s announcement has sparked immediate concern across the film industry. According to Variety, top studio executives convened an emergency meeting to discuss the potential impact.

Still, significant uncertainty remains over whether the president has the legal authority to impose such a tariff, along with questions about how it would be practically implemented.

There is also confusion surrounding the fate of films already completed or currently being produced overseas. Major franchises like Avatar, The Avengers, and Mission: Impossible have chosen to shoot in countries such as New Zealand, the UK, and Hungary, largely due to lower production costs and visually compelling locations.

The timing of the announcement is notable, arriving just one week before the Cannes Film Festival in France. Many American studios plan to attend the event to secure funding or finalize international distribution deals.

At present, it's unclear whether Trump’s proposed tariff would also apply to foreign films screened exclusively in U.S. theaters.

While Trump asserts that Hollywood is in steep decline, industry data paints a more nuanced picture. According to Variety, the domestic box office has seen a 15.8 percent increase in revenue so far in 2025 compared to the previous year.

Titles like A Minecraft Movie, Sinners, and Thunderbolts are performing well. Still, the overall volume of film production remains below pre-2023 levels, reflecting the lasting impact of the actors’ and writers’ strikes that year.

The number of films and television shows produced in the U.S. is still 40% lower than before the strike. This situation is exacerbated by budget cuts from various media conglomerates, directly impacting the reduction of production lists.

Editor's Choice: Trump to Slap 100% Tariff on Foreign Films

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