Donald Trump has announced that the U.S. will impose a 100% tariff on all films produced outside the country. He claimed that other nations use their film industries to spread propaganda and harm Hollywood. This striking announcement, made on Truth Social, displayed a bleak picture of the current state of the American film industry. 

“The Movie Industry in America is DYING a very fast death,” Trump shared a post. “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!” “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,” he composed. “WE WANT MOVIES MADE IN AMERICA, AGAIN!"

The U.S. Trade Representative (USTR) has pointed out that non-tariff hurdles, such as local regulations and tax benefits in other countries, can put American filmmakers at a disadvantage. Cities like Toronto and Dublin have become popular filming spots thanks to attractive tax incentives, drawing productions away from the U.S. California Governor Gavin Newsom has proposed a significant tax credit to bring film production back to Hollywood to counter this trend. At the same time, box office numbers in the U.S. have declined, with fewer big movies releasing in theatres since the pandemic and more people choosing to stream films at home instead. 

Trump’s latest actions have intensified his unpredictable trade strategy, adding to the global economic uncertainty. Since his return to office, he has imposed steep tariffs on a wide range of imports, including an enormous 145% duty on Chinese goods. In response, China hit back with a 125% tariff on American products, escalating a trade conflict that has disrupted international supply chains and sparked concerns about a potential recession. Recent U.S. economic figures show the economy shrank by 0.3% in the first quarter of 2025, with significant drops in imports and consumer spending drops. Shipments from China have dropped by 60%, prompting many shipping lines to cancel up to 25% of their scheduled trips. The Port of Los Angeles also sees a sharp 35% decline in incoming cargo, as companies pull back on purchases due to the uncertainty over tariffs.

Economists are holding Trump’s unpredictable trade approach responsible for increasing economic instability. When asked how much of the downturn is linked to Trump’s actions, Boston College economist Brian Bethune replied, “All of it.” Although Trump claims to be working on “privileged” trade agreements with countries like Switzerland, South Korea, and Japan, foreign leaders have expressed frustration over confusion and poor communication. Josh Lipsky from the Atlantic Council said, “There’s not a coherent strategy,” adding, "They don’t understand completely what the White House wants, nor who they should be negotiating with."