Quick overview

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U.S. President Donald Trump announced a 100% tariff on all films produced outside the United States, aiming to strengthen the domestic industry and pressure global studios.

The move aligns with his “America First” trade policy and broader isolationist agenda.

Trump authorized the Commerce Department and the U.S. Trade Representative to begin the process of implementing the tax, claiming the American film industry is “in a very rapid decline.” He argued that subsidies and incentives offered by other countries represent “a concerted effort” to lure filmmakers away, calling it “a threat to national security.”

The announcement was made on his social media platform, where Trump also lashed out at California’s Democratic governor, Gavin Newsom, labeling him “weak and incompetent” for allowing what he described as the “theft of Hollywood—like taking candy from a baby.” He closed with a call to action: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”

It remains unclear whether the tariffs will apply to streaming platforms or how the levies will be calculated. The policy could also affect U.S. blockbusters filmed abroad, such as Deadpool & Wolverine, Wicked, and Gladiator II. Kirsty Bell, CEO of Goldfinch Entertainment, noted that even global hits like Barbie, distributed by Warner Bros., “were filmed almost entirely in the U.K.”

Hollywood’s Migration to the U.K.

High production costs in the U.S. have pushed many studios overseas, where countries like the U.K. offer tax breaks, modern infrastructure, and skilled crews. Britain has emerged as a global production hub, hosting films such as Barbie, Mission: Impossible, and Star Wars. According to the British Film Institute, of the £2.1 billion invested in U.K. productions in 2024, £1.85 billion came from foreign projects—a 78% jump from 2023.

The British union Bectu warned the tariffs could deal a “devastating blow” to the industry and its freelance workforce. It urged the U.K. government to act quickly to defend the sector, calling support for creative freelancers “a matter of vital national economic interest.”

Analysts caution that the tariffs could ultimately backfire, inflicting more harm than benefit on the U.S. film industry.