Trump again threatens 100% tariff on movies made outside the U.S.

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President Trump has once more proposed a 100% tax on movies made outside of the United States. He believes this would boost film production within America, but many in Hollywood have expressed doubts about the idea.

In a post on his Truth Social platform Monday, Trump claimed that other countries have essentially stolen the American movie-making business, comparing it to taking ‘candy from a baby.’ He specifically called out California, stating that it has been severely impacted due to its ‘weak and incompetent’ Governor. To address what he described as a long-standing and continuous issue, Trump announced he would be implementing a 100% tariff on all movies produced outside of the United States.

Honestly, the announcement was a little vague. It didn’t explain how this tariff would actually work, or how they’d even collect it. I reached out to the White House for more information, but they didn’t respond right away. I’m hoping they’ll clarify things soon, because it’s important to understand the details. You can find more information here if it becomes available.

Hollywood Inc.

Following President Trump’s announcement of a 100% tax on movies filmed outside of the United States, Hollywood is responding to the news.

This isn’t the first instance of Trump suggesting a tariff on movies filmed outside the United States to address what’s often referred to as runaway production. He’s brought up this idea before as a way to discourage filmmakers from shooting abroad. Essentially, he’s proposing a tax on foreign-made films to encourage domestic production. More details can be found here.

Last May, Trump announced he was directing the Commerce Department and the U.S. Trade Representative to start the process of imposing a 100% tax – or tariff – on all movies made in foreign countries and brought into the U.S. He specified this would apply to “any and all” such films. [1]

The announcement caught studio executives off guard, as they stated they weren’t given any warning. Soon after, California Gov. Gavin Newsom contacted the White House, proposing they collaborate on a national film tax incentive – something many industry professionals have expressed a preference for instead of a tariff.

Hollywood Inc.

From a large number of applications, 22 projects were selected to receive funding from the state’s incentive program. The program’s funding has increased to $750 million, rising from its previous level of $330 million.

Newsom reacted to Trump’s criticism by posting on X a side-by-side comparison. He shared a news headline showing a rise in applications for California’s updated film and TV tax credit program, next to a headline detailing the stock performance of Hollywood studios following Trump’s May suggestion of a 100% tariff on films produced outside the U.S. “It’s almost as if we have a plan,” Newsom wrote. “Almost like Donald Trump really doesn’t.”

Countries like Canada, the U.K., and New Zealand have created attractive film tax credit programs. These, combined with reduced production expenses, are increasingly drawing filming away from the U.S. California has been especially affected by this shift in where films are made.

As a result, many states have increased their own tax credit programs. For example, California has more than doubled the yearly funding for its film and TV tax credit and broadened who can qualify.

The Motion Picture Assn., which represents the major Hollywood studios and lobbies on their behalf, could not be reached for a statement right away.

California’s members of Congress once again voiced their backing for a national tax break program for filmmakers, aiming to strengthen the American film industry. On Monday, they reiterated their support for the federal film tax incentive program to help the U.S. film business.

I was really glad to hear that Senator Adam Schiff (D-Burbank) said he’s “ready to work with this administration” and with colleagues on both sides of the aisle. He pointed out that a tariff could have unintended and damaging consequences, and that’s why he wants to get a major federal film tax credit passed. It’s good to see him trying to find common ground and support the film industry!

According to a representative for the California senator, he is presently developing a plan for a national program to encourage film production.

Representative Laura Friedman (D-Glendale), who previously worked as a film producer, also urged action on a federal tax incentive. She explained that a 100% tariff on movies filmed outside the U.S. would likely raise prices for viewers.

I’m glad President Trump understands that the American film and television industry – a key part of our country’s identity – is struggling,” she stated. “I’m hopeful he’ll work with us to find a genuine fix that creates fair competition with companies from other countries.”

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2025-09-29 21:01