Film production companies hoping to film outside the United States faced a major challenge today. This morning, President Donald Trump reinforced his plans to increase the difficulty for companies filming movies abroad. More details are emerging, but the impact could be significant.
According to reports, on the morning of September 29th, Trump stated he planned to impose a 100% tax on films not produced in the United States. This announcement left the entertainment industry uncertain about the practical implications of such a tax on movies.
In May, Trump stated that Hollywood was declining rapidly, and he labeled filming outside the US a “national security threat”, suggesting it allowed “messaging and propaganda” to enter the country. Recently, Trump has again confirmed his intention to implement these tariffs.
On his social media platform, Truth Social, Trump stated: “The U.S. film industry has been losing business to other countries – it’s like taking candy from a baby. California, and its ineffective Governor, has suffered greatly because of this. To fix this ongoing issue, I will be implementing a 100% Tariff on all movies produced outside of the United States. Thank you for considering this.”
Trump’s Initial Announcement Left Many Questions
When Trump initially announced the tariffs in May, industry professionals were unsure what a 100% tariff would entail. They wondered if the tariff would be 100% of a movie’s production budget – paid by the studios – or if it would be added to the price of movie tickets, paid by audiences. With standard, physical goods brought into the country, the importer pays the tariff at customs, but typically recovers the cost by raising prices for consumers.
Movies present a slightly more complex situation because they are intellectual property temporarily licensed to cinemas and streaming services. Furthermore, many films identified as American productions are actually filmed globally – for example, a recent project just finished filming in the U.K. American productions often choose to film abroad due to tax benefits which help producers lower film costs. Studios also select international locations for visually appealing settings, like
The president announced on Truth Social that he intends to move ahead with his plan to impose a 100% tariff on imported goods. However, it’s unclear if he actually has the power to implement it. ScreenRant pointed out that it’s difficult to determine exactly how this would work with movies and other imports, especially considering the entertainment industry operates on a global scale.
His initial proposal for a movie tariff back in May didn’t gain much traction, making it difficult to predict the outcome this time around. Currently, Hollywood is experiencing a trend of productions moving out of the U.S. due to rising costs. However, these proposed tariffs could potentially offset that problem later on.
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2025-09-29 21:07