Trump’s Tariff Plan Shakes Hollywood

Trump’s Tariff Plan Shakes Hollywood

On May 5, 2025, President Donald Trump announced a bold plan to impose a 100% tariff on all movies produced outside the United States.

The unexpected move sent shockwaves through Hollywood, an industry already grappling with economic challenges.

Trump’s proposal aims to bring film production back to American soil, but it has sparked confusion, fear, and debate among studio executives, filmmakers, and industry workers. With details scarce and the potential for major disruption high, Hollywood is bracing for a turbulent future.

What Is Trump’s Tariff Plan?

Trump’s tariff plan targets any movie “produced in foreign lands,” as he stated in a Truth Social post. He directed the Department of Commerce and the U.S. Trade Representative to begin implementing a 100% tariff, which would double the cost of importing foreign-made films.

The policy could apply to movies shot entirely abroad or those with partial international production, though specifics remain unclear.

Questions linger about whether the tariff will cover theatrical releases, streaming content, or even television shows, many of which are filmed in countries like Canada and the U.K.

The White House has said “no final decisions” have been made, but the proposal alone has rattled the industry. Trump claims the tariff will revive domestic filmmaking, citing incentives offered by other countries as a “national security threat” that steals jobs and promotes foreign “propaganda.”

However, the lack of a clear framework has left Hollywood scrambling to understand how the policy would work.

The tariff idea emerged after Trump met with actor Jon Voight, one of his “special ambassadors” to Hollywood, along with media executive Steven Paul and producer Scott Karol at Mar-a-Lago. Voight’s group proposed a mix of federal tax incentives, tax code changes, and “limited” tariffs to boost U.S. production.

Trump’s announcement, however, went far beyond their suggestions, catching even his advisors off guard. The policy marks a dramatic extension of tariffs into the service sector, where the U.S. enjoys a significant trade surplus, particularly in entertainment.

Why Is Trump Doing This?

Trump’s stated goal is to “make Hollywood great again” by bringing movie production back to the U.S. He argues that foreign incentives, such as tax credits and lower labor costs, have lured American studios overseas, devastating Hollywood and other U.S. filmmaking hubs.

In his Truth Social post, Trump called the movie industry “dying a very fast death” and accused other nations of orchestrating a “concerted effort” to undermine American filmmaking.

He framed the issue as a matter of national security, claiming foreign productions could spread harmful “messaging and propaganda.”

Critics, however, see the tariff as a political maneuver. Bill Mechanic, a veteran producer, suggested Trump is using the policy to create a “dumpster fire” and distract from broader economic backlash caused by his tariff-heavy agenda.

Others argue it reflects Trump’s populist appeal, aligning with figures like Teamsters leader Sean O’Brien, who advocate for protecting American jobs.

The move also appears to target Hollywood’s liberal reputation, with some X posts speculating it’s an act of “vengeance” against an industry that has often opposed him. Trump’s claim of “very strong research” behind the plan has been met with skepticism, with no evidence provided to support his assertions.

How Is Hollywood Shaken?

Hollywood’s reaction has been a mix of confusion, dread, and cautious hope. Studio executives, unions, and filmmakers are struggling to interpret the vague proposal.

Shares of major companies like Netflix, Paramount Global, and Warner Bros. Discovery dropped as Wall Street grappled with the uncertainty.

The Motion Picture Association, representing top studios, declined to comment, reflecting the industry’s hesitation to engage publicly until more details emerge. Agents and producers told TheWrap they doubt the tariffs will move forward without a clear definition of “foreign production.”

The announcement has sparked fear of economic fallout. Heeyon Kim, a Cornell University professor, warned that tariffs could trigger retaliatory measures from other countries, costing Hollywood billions in international box office revenue, which accounted for over 70% of its earnings in 2024.

Unions like SAG-AFTRA and IATSE expressed willingness to discuss domestic production with the White House but urged solutions that “do no harm” to global partnerships. California Governor Gavin Newsom criticized the tariffs, pushing instead for a $7.5 billion federal tax credit to incentivize U.S. filming.

Filmmakers worry about creative and logistical constraints. Many blockbuster films, like Marvel’s Thunderbolts, shoot partially abroad for scenic locations or cost savings.

A tariff could force studios to abandon international shoots, limiting artistic choices and raising budgets. S. Mark Young, a USC professor, called the policy a potential “disaster,” noting that studios lack the funds to absorb doubled costs. Some fear a shift toward safe, big-budget franchise films, squeezing out smaller, original projects.

What Will the Impact Be?

The tariff’s impact depends on its final form, but experts predict significant disruption. If applied broadly, it could raise ticket prices and streaming subscription fees as studios pass on costs to consumers.

Young warned that doubling production expenses could make foreign filmmaking “untenable,” but without extra funding, U.S. production may not scale up to meet demand. This could shrink the industry’s output, costing jobs in production, marketing, and distribution.

Internationally, the tariffs could provoke trade wars. China, a major market for Hollywood, has already signaled retaliation, with reports of potential bans on U.S. films.

The U.K., a key filming hub, fears damage to its thriving industry, with officials vowing to protect their sector in trade talks. Australia’s screen industry also raised concerns, highlighting the global ripple effect. A 2001 attempt to impose tariffs on Canadian productions failed due to similar complexities, suggesting Trump’s plan may face legal and practical hurdles.

The policy could also reshape Hollywood’s business model. Studios may prioritize U.S.-based shoots, boosting local economies in states like Georgia and New York.

However, higher costs could deter investment, and creative compromises might alienate audiences. Some, like Rep. Laura Friedman, see an opportunity for federal tax credits to replace tariffs, leveling the playing field without punitive measures. For now, the industry remains in limbo, awaiting Trump’s promised meetings with studio leaders.

Hollywood’s Recent Struggles and Reactions

Hollywood has faced a rough few years. Production in Los Angeles dropped 40% over the past decade, driven by cheaper labor and generous tax credits abroad. The COVID-19 pandemic, followed by 2023 writers’ and actors’ strikes, further strained the industry, costing over 18,000 jobs.

Studios across Los Angeles sit empty, and behind-the-scenes workers struggle to find steady employment. Other states, like Georgia and New Mexico, have lured productions with incentives, but international hubs like Vancouver and London remain dominant.

Industry voices reflect a mix of skepticism and pragmatism. Duncan Crabtree-Ireland of SAG-AFTRA said the union is open to dialogue but cautious about unintended consequences.

Producer Stephen Follows noted that Trump’s plan forces Hollywood to confront the question, “What does it mean for a movie to be made in America?” Others, like Mechanic, dismiss the tariffs as thoughtless, predicting they’ll “blow a hole” in the industry.

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