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Trump announces a 100% tariff on foreign films

Trump announces a 100% tariff on foreign films

President Donald Trump has opened a new front in his tariff war , targeting films made outside the United States .

Trump posted on his Truth Social platform on Sunday that he has authorized the Department of Commerce and the Office of the United States Trade Representative to impose a 100% tariff "on any and all motion pictures entering our country that are produced in foreign lands."

"The film industry in the United States is dying rapidly," he wrote, complaining that other countries "are offering all sorts of incentives to attract" filmmakers and studios. "This is a concerted effort by other nations and therefore a threat to national security . It is, on top of all this, messaging and propaganda!"

It's currently unknown how such a tariff could be implemented on international productions. It's common for both large and small films to include production in the United States and other countries. Big-budget films like the upcoming Mission: Impossible - The Final Reckoning , for example, are filmed in different parts of the world.

For years, incentive programs have influenced where movies are filmed, leading to fewer films being shot in California and more in other states and countries with favorable tax incentives, such as Canada and the United Kingdom.

However, the tariffs are intended to drive consumers toward American products. And in theaters, US-produced films dominate the domestic market by a wide margin.

China has increased its domestic film production, culminating in the animated hit Ne Zha 2 , which grossed more than $2 billion this year. But almost all of its sales came from mainland China. In North America, it grossed just $20.9 million.

The Motion Picture Association (MPA) did not immediately respond to messages seeking comment.

MPA data shows how much Hollywood exports have dominated theaters. According to the MPA, US films generated $22.6 billion in exports and a trade surplus of $15.3 billion in 2023.

Trump has lived up to the "Tariff Man" nickname he gave himself years ago, imposing new taxes on products manufactured in countries around the world. This includes a 145% tariff on goods from China and a 10% base tax on products from other countries, with the threat of raising taxes on imports.

By unilaterally imposing tariffs, Trump has exerted extraordinary influence over the flow of trade, creating political risks and pushing the market in different directions. Tariffs are on automobiles, steel, and aluminum , and levies on products like pharmaceutical drugs are expected to take effect in the coming weeks.

Trump has expressed concern for years about the relocation of film production overseas.

Shortly before taking office, he announced that he had chosen actors Mel Gibson, Jon Voight and Sylvester Stallone to serve as "special ambassadors" to Hollywood to "return bigger, better and stronger than ever!"

Film and television production in the United States has faced several obstacles in recent years, with setbacks such as the COVID-19 pandemic, the 2023 Hollywood guild strikes, and the recent wildfires in the Los Angeles area. Total production in the United States decreased by 26% last year compared to 2021, according to data from ProdPro, a firm that tracks productions.

The group's annual survey of executives, which asked about favorite filming locations, revealed no U.S. spots in the top five, according to the Hollywood Reporter. Toronto, the United Kingdom, Vancouver, Central Europe, and Australia took the top spots, with California in sixth, Georgia in seventh, New Jersey in eighth, and New York in ninth.

The problem is especially acute in California . In the Los Angeles metropolitan area, production last year was down 5.6% compared to 2023, according to FilmLA, second only to 2020, during the peak of the pandemic. Last October, Governor Gavin Newsom proposed expanding California's Film and Television Tax Credit program from $330 million to $750 million.

Other US cities, such as Atlanta, New York, Chicago, and San Francisco, have also used aggressive tax incentives to attract film and television productions . These programs can take the form of cash grants, as in Texas, or tax credits, as offered in Georgia and New Mexico.

"Other nations have been robbing the United States of its movie-making capabilities," Trump told reporters at the White House Sunday night after returning from a weekend in Florida. "If they're not willing to make a movie in the United States, we should have a tariff on the movies that come in."

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