The movie industry is rattled.
Former President Donald Trump has proposed a 100% tariff on films produced outside the United States in an effort to curb the growing trend of American movie productions moving overseas. While the intention is to revive domestic filmmaking, the proposal has sparked significant backlash across the global film industry.
Over the past decade, film and television production has gradually shifted away from traditional hubs like Hollywood and California. U.S. cities such as Atlanta, New Orleans, and Albuquerque have gained popularity, but a substantial amount of production has also relocated to countries like Canada, the U.K., Australia, and parts of Europe, where governments offer appealing tax breaks and incentives.
Although California Governor Gavin Newsom has attempted to lure productions back with tax incentives, many in the industry argue that these efforts are insufficient and too late. U.S.-based film and TV production has reportedly declined by 40%, with widespread job losses and industry professionals relocating to find work.
In response to this decline, Trump issued a statement on Truth Social condemning the erosion of the American film industry and framing it as a national security concern due to foreign influence over media content. He directed the Department of Commerce and the U.S. Trade Representative to begin the process of implementing a steep import tariff on foreign-made films, stating, “We want movies made in America, again!”
Trump’s announcement has been met with confusion and criticism. Speaking to Variety, one British producer questioned the logic behind taxing internationally shot films that are still funded and produced by American studios. Films like Harry Potter, The Lord of the Rings, and Mission: Impossible were all considered U.S. productions despite being filmed overseas, often for creative or financial reasons.
Others warned that if enacted, such a policy could severely disrupt the industry. European film officials noted that films are typically categorized as services rather than physical goods, making them ineligible for traditional import tariffs under international trade laws. Some suggested that any legal attempt to classify films as taxable imports could result in lengthy litigation.
While industry professionals in the U.S. and abroad remain skeptical, many are holding off on taking action until more details emerge. Italian producer Marco Valerio Pugini noted that certain stories and landscapes demand international locations, adding humorously that “James Bond isn’t going to be filmed in Detroit.”
Critics also expressed concern about unintended consequences, such as accelerating the use of AI in film production or driving studios to further distance themselves from U.S. operations entirely to avoid regulatory complications. Former Abu Dhabi film commissioner Hans Fraikin warned that such a drastic policy could prompt a global pivot away from American involvement in filmmaking.
