Trump's new tariff threat: 100% duty on foreign movies as Hollywood 'is dying'

Donald Trump has announced that the United States will impose a 100% tariff on all foreign-produced films, accusing other countries of undermining Hollywood and using cinema as a propaganda tool.

The revelation was made via a post on Truth Social, in which the US President sharply criticised the state of the American film industry.

“The Movie Industry in America is DYING a very fast death,” Trump posted. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”

He continued: “Therefore, I am authorising the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”

The USTR acknowledges that non-tariff trade barriers, such as regulations and foreign tax incentives, may negatively impact US filmmakers. Many international cities offer substantial tax benefits to attract film and television productions, contributing to a migration of projects to locations such as Toronto and Dublin. In response, California Governor Gavin Newsom has proposed a significant tax credit to stimulate Hollywood production.

Meanwhile, US cinema ticket sales have fallen, with fewer blockbuster films reaching theatres following the pandemic, and audiences increasingly turning to home streaming services.

This latest move adds another layer to Trump’s unpredictable trade policies, which have already had widespread repercussions for the global economy. Since returning to office, he has levied tariffs on a broad range of imported goods, including a steep 145% duty on Chinese imports. In retaliation, China imposed a 125% tax on American products, escalating a trade conflict that has disrupted global supply chains and heightened recession fears.

US economic data released this week showed a 0.3% decline in GDP in the first quarter of 2025, with significant drops in imports and consumer spending. Ocean container bookings from China have plummeted by 60%, forcing shipping companies to cancel up to 25% of sailings. Arrivals at the Port of Los Angeles are expected to fall by 35% as firms delay orders amid tariff uncertainties.

Economists blame Trump’s unorthodox trade policies for the mounting instability. When asked how much of the slowdown could be attributed to Trump’s measures, Boston College economist Brian Bethune replied, “All of it.”

Despite Trump’s claims of negotiating “privileged” trade deals with Switzerland, South Korea, and Japan, foreign officials have expressed confusion and frustration over a lack of clear communication. “There’s no coherent strategy,” said Josh Lipsky of the Atlantic Council. “They don’t understand completely what the White House wants, nor who they should be negotiating with.”