Politics

Trump’s Movie Tariff: Will Hollywood Productions Halt?

Trump proposed a 100% tariff on foreign movies, citing tax incentive concerns. Industry reacted with surprise; stocks shifted.

byEditorial Staff

September 29, 2025, 3:46 PM

Filmmakers are busy with their equipment on the set

A glimpse into the collaborative effort of a film crew working diligently on set. By MDL.

Executive Summary

President Donald Trump announced a 100% tariff on all foreign-made movies, presented as a measure to counter tax incentives offered by other countries that draw filmmakers away from the United States.

The proposed 100% tariff on foreign-made movies would mark the first time Trump’s administration has imposed a tariff on a service rather than a physical good.

The movie tariff is part of a broader strategy, with Trump’s administration preparing to implement several other tariffs on various goods, including branded drugs, heavy trucks, kitchen cabinets, and furniture.

The Story So Far

President Trump’s proposed 100% tariff on foreign-made movies is designed to counter tax incentives offered by other countries that draw filmmakers away from the United States, a move intended to address the domestic film industry’s struggles with “infinitely cheaper” overseas production and a significant decline in the U.S. box office since 2018 due to shifting consumer habits. This action is also part of a broader strategy by Trump to implement numerous tariffs across multiple economic sectors, signaling a wider protectionist approach.

Why This Matters

President Trump’s proposed 100% tariff on foreign-made movies, though its feasibility is questioned, could drastically alter the film industry by making international productions too costly for the U.S. market, potentially impacting content availability and consumer prices. This measure, alongside significant tariffs planned for pharmaceuticals, trucks, and furniture, signals a broader protectionist economic strategy that could lead to widespread price increases and supply chain disruptions across various sectors of the economy.

Who Thinks What?

President Trump views the 100% tariff on all foreign-made movies as a measure to counter tax incentives offered by other countries and draw filmmakers back to the United States.

An industry insider suggests the proposed tariff would be “shocking,” could lead to a “virtually complete halt of production,” and questions its practical feasibility and jurisdiction.

Jay Sures of United Talent Agency notes that overseas production is “infinitely cheaper” due to lower labor costs and other factors, despite American actors and directors preferring to work domestically.

President Donald Trump announced a 100% tariff on all foreign-made movies via a Truth Social post on Monday, September 29, 2025. The move, which would mark the first time his administration has imposed a tariff on a service rather than a physical good, was presented as a measure to counter tax incentives offered by other countries that draw filmmakers away from the United States.

Trump did not specify the timeline or mechanism for enacting the proposed tariff. He highlighted California as a state particularly affected by filmmakers moving abroad, despite the state and other American cities offering their own tax incentives to retain production.

Industry Reaction and Context

The announcement caught Hollywood by surprise, with an industry insider telling CNN at the time of an initial threat in May that such a tariff would be “shocking” and could “represent a virtually complete halt of production.” However, the insider also questioned the feasibility and jurisdiction for such an enforcement.

Jay Sures, vice chairman of United Talent Agency, noted in May that despite American actors and directors preferring to work domestically, overseas production often proves “infinitely cheaper” due to lower labor costs and other factors. Following Trump’s latest post, shares of Netflix (NFLX) opened down 1% on Monday, while other movie-related companies like AMC (AMC) and The Walt Disney Company (DIS) saw their shares open higher.

The US box office has experienced a significant decline since its peak of nearly $12 billion in 2018, plummeting to just over $2 billion in 2020 due to the pandemic. While theaters have rebounded, the number of major film releases remains about half of 2019 levels, and total domestic box office gross has not exceeded $9 billion since then, as consumer habits have shifted towards streaming platforms.

Broader Tariff Plans

Beyond films, Trump’s administration is preparing to implement several other tariffs. As of Wednesday, September 30, 2025, a 100% tariff on branded drugs (with some exceptions), a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and vanities, and a 30% tariff on upholstered furniture are set to be imposed.

In a separate social media post on Monday, Trump indicated plans for an additional “substantial” tariff on all furniture imported into the United States. These announcements signal a broader strategy of leveraging tariffs across multiple sectors of the economy.