WASHINGTON: Donald Trump has declared war on foreign-made movies. The American president announced on Monday that he would impose a 100 per cent tariff on all films produced outside the United States, threatening to blow up Hollywood’s international operations. As well as possible revenues that Indian films make in Uncle Sam.
The move, posted on Trump’s Truth Social platform, marks an audacious expansion of his protectionist trade agenda into cultural industries. “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby,” he wrote, taking a swipe at California’s “weak and incompetent” governor Gavin Newsom.
Yet the announcement left crucial questions unanswered. The White House offered no details on the legal authority Trump would invoke or how such tariffs would work in practice. Studio executives are baffled: modern filmmaking splices together production, financing, post-production and visual effects from multiple countries. How would a film shot in New Zealand with British money and American stars be classified?
Legal experts are equally sceptical. Films are intellectual property traded as services—a category where America typically runs a surplus. That raises doubts about whether tariffs can even be applied. Co-productions with foreign studios have become routine, further muddying the waters.
Trump first floated the idea in May, calling foreign productions a “national security threat” that imports “messaging and propaganda.” Entertainment executives were flummoxed then and remain so now.
The industry has increasingly decamped from Hollywood to chase tax breaks in Britain, Australia and New Zealand. California is scrambling to compete: Newsom has pushed to expand the state’s film tax credits. But some productions film abroad simply because their stories demand it. Directors like Denis Villeneuve and Christopher Nolan favour shooting on location rather than on soundstages.
The major American studios declined to comment to Reuters. Netflix shares, however, slipped 1.5 per cent in early trading.
The silence from studios suggests an industry still trying to parse whether Trump’s threat is bluster or genuine policy. Either way, it signals fresh uncertainty for an entertainment business already grappling with streaming upheaval and rising costs.
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