Trump imposes 100% tariff on films made outside the US; Global film industry in shock

Trump’s new tariff proposal presents a challenging and uncertain step for Hollywood and the global film industry. Implementation of this decision will impact filmmakers, digital platforms, and global audiences. Industry and trade experts are now grappling with the long-term implications of this decision.

Washington DC: US President Donald Trump made a shocking announcement on Monday. He stated that every film produced outside the US will now be subject to a 100% tariff. This decision is shocking not only for Hollywood but for the entire global film industry.

Trump Statement and Social Media Posts

Trump wrote on his social media platform, "Truth Social," that other countries have snatched the US film industry from them, like a candy being snatched from a child. His statement has caused widespread concern within the American film industry. A significant portion of Hollywood's revenue comes from abroad, and the implementation of this tariff will impact filmmakers and audiences worldwide.

Hollywood and Digital Platforms Concerns

Following Trump's announcement, major companies like Warner Bros. Discovery, Comcast, Paramount, Skydance, and Netflix are in a state of confusion. Films aren't just made in the US; their shooting, funding, post-production, and VFX take place worldwide. Industry experts are also perplexed about how the 100% tariff will be implemented and which films will be affected.

Trade Rules and Legal Complexities

Law and trade experts say that films are intellectual property and are part of the global service trade. Therefore, imposing tariffs on foreign films could be against international trade rules.

Co-production, where a film is created in collaboration with multiple countries, has become increasingly common. This makes it difficult to determine which films will be subject to tariffs and which will not. Hollywood executives are awaiting clear guidelines on this issue.

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Market Impact

Trump's statement also impacted the stock market. Netflix shares fell by about 1.5% during early trading.

There has been no official statement from the White House yet on how these tariffs will be implemented or what the legal process will be. It's worth noting that Trump also talked about imposing tariffs on foreign films in May 2025, but no concrete plans or rules were outlined at the time.

Trump's new tariff proposal presents a challenging and uncertain step for Hollywood and the global film industry. Implementation of this decision will impact filmmakers, digital platforms, and global audiences. Industry and trade experts are now grappling with the long-term implications of this decision.

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