After a vague gesture in early May this year that his administration would be including foreign-made films in its proxy war on the global economy, U.S. President Donald Trump has once again returned to the idea—and again has done so without offering any feasible reason as to why or how the U.S. government would put tariffs on the global film industry.
In between taking potshots at NYC mayoral candidate Zohran Mamdani and reiterating other, similarly absurd tariff threats (including threatening any country that does not make furniture in the United States), this morning President Trump took to his platform of choice, Truth Social, to once again threaten an imposition of a 100% tariff “on any and all movies that are made outside of the United States.”
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,'” the President said in his post, before taking a customary potshot at one of his favorite targets, California Governor Gavin Newsom.
Just as was the case in May, Trump’s “announcement” includes no details on just how such a tariff would be imposed and collected and continues to raise questions as to how such a tariff would be legally feasible. There’s also little understanding as to why Trump has picked now to rethreaten the imposition, beyond the President’s penchant for flip-flopping back and forth on his myriad social media demands.
The President’s belief that the U.S. movie industry is losing out to considerable tax incentives offered by foreign film industries remains largely true. Filming hubs in states like California and Georgia have seen major movie studios decamp in favor of shooting in countries like the United Kingdom, Australia, and New Zealand, all of which offer both high incentives for foreign productions and the promise of reduced labor costs in comparison to working in the states.
Earlier this year, Marvel Studios left behind production from its longtime home in Atlanta, Georgia, to film projects primarily in the UK going forward, starting with Fantastic Four: First Steps but continuing with films like Avengers: Doomsday and Spider-Man: Brand New Day with Sony. This summer, Governor Newsom announced an increase on the cap for California’s film and TV tax credit from $330 million to $750 million, citing similarly competitive credits offered in other U.S. states and around the world.
But that also doesn’t really take into account that movies film outside of the U.S. simply because they have chosen to shoot in, and set stories in or inspired by, locations that are not the United States. Trump’s vague demands do not make it clear if the tariff applies to films made by U.S. studios or simply any film project that films internationally full stop—and as was the case in May, it also fails to make any mention of the TV industry, which likewise faces similar circumstances.
With little indication as to how the Trump administration would act upon the President’s demand, there’s little knowing just how the film industry is going to react to Trump’s renewed threat. Previously, the White House offered a somewhat reconciliatory statement after his remarks in May, simply saying that the administration was still in the process of exploring decisions as to how it could be “Making Hollywood Great Again,” followed by months of silence on the matter until now.
Whatever happens, it would appear that the administration’s lack of follow-through up to this point is not quite rattling the movie industry as it almost did the first time he made the threat. CNN reports that as of this morning, only Netflix opened down on the U.S. stock exchange in the wake of Trump’s comments (by 1%), while other movie industry-affiliated companies, such as Disney and AMC, opened higher.