President Donald Trump has announced plans to impose a 100% tariff on foreign-made movies, repeating a threat he first made in May.
The proposed tariff aims to protect the US film industry, which Trump claims has been “stolen” by other countries offering tax incentives that lure filmmakers abroad.
Trump specifically mentioned California, saying the state “has been particularly hard hit” despite its own tax incentives.
The tariff could double the cost of importing foreign films, potentially leading to higher prices for moviegoers and subscribers.
Distributors, theaters, and streaming platforms might reconsider their content mix, resulting in fewer foreign films being shown in the US.
The tariff could affect co-productions between US and international studios, as well as international box-office revenue.
Studio executives are unsure how the tariff would be enforced, given the global nature of film production and distribution.
The tariff could impact thousands of US workers employed on overseas shoots, from visual effects artists to production crews.
The US film industry recorded a $15.3 billion trade surplus in 2023,backed by $22.6 billion in exports to international markets.
Production spending in the US decreased by 26% compared to 2022.