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U.S. President Donald Trump has announced plans to impose a 100 per cent tariff on all foreign-produced films entering the United States, a policy that could dramatically reshape Hollywood’s global business model.
The move extends Trump’s protectionist trade approach into the cultural sector, raising uncertainty for American studios that rely heavily on cross-border productions and international box office earnings.
“Our movie-making business has been stolen from the United States of America by other countries, just like stealing candy from a baby,” Trump wrote on his Truth Social account.
It remains uncertain what legal authority Trump intends to use to enforce the measure. The White House did not immediately respond to requests for clarification. Major studios—including Warner Bros Discovery, Paramount, Skydance, Netflix, and Comcast—declined to comment when contacted.
Analysts warn the proposal could drive up production costs and ultimately raise ticket prices for consumers.
“There is too much uncertainty, and this latest move raises more questions than answers,” said Paolo Pescatore, a technology and media analyst at PP Foresight.
Hollywood unions and guilds had previously urged Trump to pursue domestic tax incentives rather than tariffs, warning that international co-productions and overseas shoots are critical to sustaining jobs and financing.
The U.S. film industry has long maintained a healthy trade surplus. In 2023, it reported $22.6 billion in exports and a $15.3 billion trade surplus, according to the Motion Picture Association.
Much of this success comes from partnerships abroad, with production hubs in Canada, the UK, and Australia offering tax breaks, while co-productions in Europe and Asia provide both funding and market access.
Industry executives fear a sweeping tariff could disrupt this system, potentially affecting thousands of U.S. workers—from visual effects specialists to production crews—who contribute to projects filmed across multiple countries.
Written by: Umar Abdullahi
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