Former President Donald Trump has announced plans to impose a 100% tariff on all films produced outside the United States. This decision is informed by the current climate of national security discourse and debate. Other countries are “stealing the film and television industries right out from under” the U.S., according to Trump’s argument. Most importantly, he wants to defend American film production from foreign competition. To do this, he has directed the Commerce Department and the U.S. Trade Representative to impose a new border-adjustment import tax.
Experts warn that the proposed tariff could significantly increase production costs for filmmakers, potentially doubling expenses for movies made abroad. A nationwide blanket tariff would only add confusion and create more uncertainty for industry stakeholders. This tends to be the experience of most sectors caught in a trade pickle. The proposal as written raises serious concerns about restricting filming locations. This curbs would be detrimental to Hollywood and the international film sector alike.
This leads U.S. studios to repeatedly choose to shoot films in other countries. They exploit generous tax incentives, which drastically reduce the cost of production. Major blockbusters, including “Mission: Impossible — The Final Reckoning,” frequently utilize international settings to enhance storytelling while managing budgets effectively. Trump’s past statements on the exodus of film production overseas only add to his bona fides on this subject.
The American film industry does enjoy a current and substantial trade deficit that favors the U.S. This dire situation makes it an unprecedented case in international trade. Farming and trade experts have cautioned that implementing these tariffs would cost American farmers billions of dollars in lost revenue. This decision will lead to thousands of lost manufacturing jobs across the industry. There is increasing fear that this action may further cement the introduction of quotas. Other countries have long practiced similar measures to kick-start their local film industries.
The film and television production landscape has certainly faced a myriad of challenges over the last few years. These hurdles include the damages from the COVID-19 pandemic, impacts of the Hollywood guild strikes of 2023, and recent Los Angeles area wildfires. As these challenges pile on top of each other, many in the industry wonder if implementing tariffs is even a productive path forward.
“When you make these sort of blanket rules, you’re missing some of the nuance of how production works.” – Steven Schiffman
Trump’s assertion that the American film industry is “DYING to a very rapid death” identifies an emerging fear. Each year more and more filmmakers are tempted to leave the U.S. for foreign incentives. According to industry insiders, this view misses a key reality of 21st century production and distribution in the digital age.
Ann Koppuzha emphasized, “There’s simply no precedent or sense for applying tariffs to these types of creative services.” She noted that traditional tariffs usually focus on tangible products moving across borders. The film production industry largely works on digital services such as shooting, editing, and post-production.
Community members like Frank Albarella felt like a better plan was needed. He stated, “Creative content distribution requires thoughtful economic approaches that recognize how modern storytelling flows across borders.” He went on to ask whether promoting American storytelling through “smart, targeted incentives” would be a better approach than tariffs.
Heeyon Kim from UDC242 agreed with the point, adding that “To me, (this) makes just no sense. She noted that the proposed tariffs wouldn’t just threaten Hollywood films, but any intellectual property created in the U.S. The audience access and affordability implications are just as alarming.
Schiffman added that the proposed tariff could lead to dramatic increases in production costs. “The cost to have done that would have like literally doubled to produce those movies under this proposed tariff.” This creates a huge problem for filmmakers who need international locations to create dynamic and varied stories.
