Is Trump's 100% tariff on foreign films a smart move to save Hollywood or a blockbuster blunder?

In a surprising new move, Donald Trump has announced that the United States will impose a 100% tariff on all films made outside the country. According to Trump, this strong step is necessary to revive what he calls a rapidly declining American film industry. He blames foreign governments for luring away Hollywood productions with attractive financial incentives and claims this shift is a national security concern, tied to foreign “messaging and propaganda.”

Trump made the announcement via his social media platform, stating he has directed the Commerce Department and the US Trade Representative to start the process immediately. “We want movies made in America, again!” he declared.

But the announcement left more questions than answers. Will these tariffs apply to movies streaming online or just theatrical releases? Will American studios filming abroad be penalised? No concrete implementation plan has been shared so far.

This uncertainty is already sending ripples through the entertainment industry. Stocks of media giants like Disney, Netflix, and Warner Bros dipped in early trading. All three have major projects either shot or being produced overseas. Even recent hits like Captain America: Brave New World and Minecraft: The Movie were largely filmed outside the US.

Hollywood has increasingly looked beyond American borders due to soaring production costs at home and better deals abroad. Countries like the UK, Canada, Australia, and New Zealand have become top picks for US productions, thanks to tax rebates and experienced film crews.

Trump’s 100% tariff shakes global film industryGetty Images

Industry insiders are alarmed. Timothy Richards of Vue Cinema asked how one would even define a “foreign” film. Is it by location, funding, or the team behind it? The British union Bectu warned that this move could devastate international film jobs, especially freelance workers.

Officials in Australia and New Zealand have already pushed back, vowing to support their homegrown industries. Meanwhile, China has responded to earlier US trade measures by cutting the number of American films allowed into its theatres and that is a sign that other countries might retaliate in kind.

While Trump says the tariffs will protect American jobs and bring back lost business, experts warn the strategy could backfire. With global cooperation being key to modern film production, this plan could isolate Hollywood rather than help it.

Could this be a comeback script for American cinema or a costly sequel nobody asked for? Only time will tell.