Trump takes his tariff war to the movies announcing 100% levies on foreign-made films

President says he will slap a 100% tax on movies made outside the United States 鈥� a vague directive aimed at protecting a business that America already dominates.

Claiming that movie production 鈥渉as been stolen鈥欌€� from Hollywood and the U.S., Trump posted on his Truth Social platform that 鈥淚 will be imposing a 100% tariff on any and all movies that are made outside of the United States.鈥欌€�

It was unclear how these tariffs would operate, since movies and TV shows can be transmitted digitally without going through ports. Also unclear is what it would mean for U.S. movies filmed on foreign locations 鈥� think James Bond and Jason Bourne 鈥� or what legal basis the president would claim for imposing the tariffs.

The president had . He has yet to specify when the tariff might go into effect.

Movies are an odd battleground for a U.S. trade war. “Unlike any other country鈥檚 film industry, U.S. movies are the most accessible, well-known, and best performing due to the numerous language options and worldwide reach provided by U.S.-based studios,” trade analyst Jacob Jensen of the center-right American Action Forum wrote in a July commentary.

In movie theaters, American-produced movies overwhelmingly dominate the domestic marketplace. Data from the Motion Picture Association also shows that American films made $22.6 billion in exports and $15.3 billion in trade surplus in 2023 鈥� with a recent report noting that these films 鈥済enerated a positive balance of trade in every major market in the world鈥� for the U.S.

Barry Appleton, co-director of the Center for International Law at the New York Law Center, warned that other countries may retaliate with levies on American movies or other services. In movies, 鈥淏rand America is way, way ahead,鈥欌€� he said. 鈥淲hat this policy does is actually cook the golden goose that鈥檚 laying the golden eggs.鈥欌€�

Tariffs are Trump’s go-to solution for America’s economic problems, a tool he likes to use to extract concessions from other countries. Reversing decades of U.S. support for lower trade barriers, he’s slapped double-digit tariffs on imports from almost every country on earth. And he’s targeted specific products, including most recently and bathroom vanities.

Unlike other sectors that have recently been targeted by tariffs, movies go beyond physical goods, bringing larger intellectual property ramifications into question.

Here鈥檚 what we know.

Why is Trump threatening this steep movie tariff?

Trump has cited national security concerns, a justification he鈥檚 to impose import taxes on certain countries and a range of sector-specific goods.

In May, Trump claimed that the American movie industry is 鈥淒YING to a very fast death鈥� as other countries offer 鈥渁ll sorts of incentives鈥� to draw filmmaking away from the U.S.

In recent years, U.S. film and television production has been hampered between setbacks from the COVID-19 pandemic, of 2023 and . Incentive programs have also long-influenced where movies are shot both abroad and , with more production leaving California to states like Georgia and New Mexico 鈥� as well as countries like Canada.

At the same time, international markets make up a large chunk of Hollywood’s total box office revenue 鈥� accounting for over 70% last year, according Heeyon Kim, an assistant professor of strategy at Cornell University. She warned that tariffs and potential retaliation from other countries impacting this industry could result in billions of dollars in lost earnings and thousands of jobs.

鈥淭o me, (this) makes just no sense,鈥� Kim The Associated Press, adding that such tariffs could 鈥渦ndermine otherwise a thriving part of the U.S. economy.鈥�

The International Alliance of Theatrical Stage Employees, which represents behind-the-scenes entertainment workers across the U.S. and Canada, said in May that Trump had 鈥渃orrectly recognized鈥� the 鈥渦rgent threat from international competition鈥� that the American film and television industry faces today. But the union said it instead recommended the administration implement a federal production tax incentive and other provisions to 鈥渓evel the playing field鈥� while not harming the industry overall.

How could a tax on foreign-made movies work?

That鈥檚 anyone鈥檚 guess.

鈥淭raditional tariffs apply to physical imports crossing borders, but film production primarily involves digital services 鈥� shooting, editing and post-production work that happens electronically,鈥� Ann Koppuzha, a lawyer and business law lecturer at Santa Clara University鈥檚 Leavey School of Business, explained when Trump first made his May threat.

Koppuzha added that film production is more like an applied service that can be taxed, not tariffed. But taxes require Congressional approval, which could be a challenge even with a Republican majority.

Making a movie is also an incredibly complex 鈥� and international 鈥� process. It鈥檚 common for both large and small films to include production in the U.S. and in other countries, or overseas altogether. Steven Schiffman, a longtime industry veteran and adjunct professor at Georgetown University, pointed to popular titles filmed outside the U.S. 鈥� such as Warner Bros鈥� 鈥淗arry Potter鈥� series, which was almost entirely shot in the U.K.

U.S. studios shoot abroad because tax incentives can aid production costs. But a blanket tariff across the board could discourage that or limit options 鈥� hurting both Hollywood films and the global industry that helps create them.

鈥淲hen you make these sort of blanket rules, you鈥檙e missing some of the nuance of how production works,鈥� Schiffman said previously. 鈥淪ometimes you just need to go to the location, because frankly it鈥檚 way too expensive just to try to create in a soundstage鈥�

Could movie tariffs have repercussions on other intellectual property?

Overall, experts warn that the prospect of tariffing foreign-made movies ventures into uncharted waters.

鈥淭here鈥檚 simply no precedent,鈥� Koppuzha said in May. And while the Trump administration could extend similar threats to other forms of intellectual property, like music, 鈥渢hey鈥檇 encounter the same practical hurdles.鈥�

But if successful, some also warn of potential retaliation. Kim pointed to 鈥渜uotas鈥� that some countries have had to help boost their domestic films by ensuring they get a portion of theater screens, for example.

Many have reduced or suspended such quotas over the years in the name of open trade 鈥� but if the U.S. places a sweeping tariff on all foreign-made films, these kinds of quotas could come back, 鈥渨hich would hurt Hollywood film or any of the U.S.-made intellectual property,鈥� Kim said.

And while U.S. dominance in film means 鈥渢here are fewer substitutes鈥� for retaliation, Schiffman noted that other forms of entertainment 鈥� like game development 鈥� could see related impacts down the road.

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