In early May 2025, President Donald Trump proposed a new tariff policy targeting foreign-made films. In a post on his social media platform, President Trump announced plans to impose a 100% tariff on all movies produced outside the United States and imported for American audiences. The move, he said, is necessary to protect American jobs and the domestic film industry, which he said is being undercut by foreign governments offering generous production incentives to lure the production of films outside the United States.
Industry leaders, distributors, and theater owners have many questions on the scope of the proposed tariffs, how they would be implemented, and what their implications would be for the industry. For example, would the tariffs apply only to major international blockbusters or would it also affect smaller foreign films and even US productions partially filmed overseas?
President Trump framed the issue not only as an economic concern but also as a matter of national security, suggesting that foreign-made films could be used for propaganda. He authorized the Department of Commerce and the United States Trade Representative to begin the process of implementing the tariffs immediately. However, legal experts have raised questions about the feasibility of such a policy, especially given that most films today are distributed digitally. Under current international agreements, including the WTO moratorium and the USMCA, tariffs on digital transmissions are prohibited until at least March 2026.
In response to the proposal, California Governor Gavin Newsom shared a proposed alternative measure to the imposition of tariffs: a federal tax credit program aimed at strengthening domestic film production. The proposed initiative, which would involve partnering with the US Administration, would be designed to keep film jobs in the United States without resorting to punitive trade measures.
While no final decision has been made, the Administration has confirmed it is exploring all options to fulfill the new directive. The proposal has sparked debate over the role of government in shaping cultural industries and the potential consequences for moviegoers, who could see ticket prices rise if the tariffs are enacted.
