By Gavin Boyle
On Sunday, President Donald Trump announced a 100% tariff on movies made outside of America. The move came after establishing special ambassadors to Hollywood to revive the entertainment industry, but not everyone believes this is the best plan.
“The Movie Industry in America is DYING a very fast death,” President Trump wrote on his social media platform Truth Social. “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.”
“Therefore, I am authorizing 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,” President Trump added. “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
The Movie Industry in America is DYING a very fast death. 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…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 4, 2025
These tariffs seek to revive the dying production business in America which has been experiencing an exodus in recent years as the price of production in America continues to rise as other countries offer lucrative tax incentives. L.A. has been hit the hardest by this exit, and the city faces a real chance at collapse if unable to recover its position as a desirable and affordable location to create movies.
President Trump hinted at making a change to assist the industry earlier this year, when he established three Hollywood special ambassadors — Jon Voight, Sylvester Stallone and Mel Gibson — to assist in restoring the industry. Leading up to the announcement of this tariff, Voight hinted at a federal incentive that would assist the struggling industry, per Deadline, which many thought would be through a national tax incentive program.
Related: What Role Will Trump’s Hollywood ‘Envoys’ Play In Industry?
The President, however, took the opposite approach, and rather than helping reduce the price of production in America, he has raised the cost of production elsewhere to level the playing field. While this may ultimately result in production returning to America, it may cause even more struggles in the industry as the price of production continues to climb, rather than fall — causing studios to have to be even more stingy with their funding. Because of this, some in Hollywood are combating these tariffs, believing them to be bad for the industry as a whole.
“We believe he has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law,” California Governor Gavin Newsom’s senior advisor for communications, Bod Salladay, told Deadline.
Meanwhile, California lawmakers remain committed to bringing back production in a more sustainable way by reducing production costs in their state. If these two sides were to work together, they would have a real chance to revitalize the industry, but as it currently stands, their dispute may only sink the industry into further trouble.
Read Next: How the Global Trade War Impacts Hollywood
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