Written by The Banking Post
US President Donald Trump has renewed his threat to impose a 100 per cent tariff on films produced overseas and imported into the United States, a move that could disrupt Hollywood’s reliance on international markets.
“Our movie-making business has been stolen from the United States of America, by other countries, just like stealing candy from a baby,” Trump wrote on Truth Social on Monday.
The president first floated the idea in May but has offered no clarity on how such tariffs would be enforced or under what legal authority. Industry executives remain uncertain whether the measure would target specific nations or apply to all foreign-made content.
Analysts warn the plan could drive up costs, with the burden likely passed on to consumers. Studio executives say enforcement would be complex, as modern films often span multiple countries in financing, production, and visual effects.
Hollywood has become increasingly dependent on overseas production hubs like Canada, the UK, and Australia, where tax breaks attract blockbuster shoots. Co-productions with Asia and Europe are also vital for financing and distribution.
The US film industry posted a $15.3 billion trade surplus in 2023, supported by $22.6 billion in exports. A broad tariff, experts caution, could hurt both foreign partnerships and thousands of American workers employed in overseas shoots.
