Trump Announces 100% Film Tariff, Threatening Hollywood and Global Cinema Trade

US President Donald Trump on Monday said he would impose a 100 percent tariff on all foreign-made films, an unprecedented move that extends his protectionist trade agenda into cultural industries and risks disrupting the global movie business.

The announcement, made in a post on Trump’s Truth Social platform, claimed that America’s moviemaking industry was being stolen by international rivals.

“Our movie making business has been stolen from the United States of America, by other countries, just like stealing candy from a baby,” he wrote.

The measure, if enforced, would directly threaten Hollywood’s reliance on international co-productions and box office revenue while also striking at foreign film industries that depend on exporting movies to the lucrative US market. Netflix shares dropped 1.5 percent in early trading following the announcement.

It remains unclear what legal authority Trump would use to apply a tariff on films. But trade lawyers point out that films are often categorized as intellectual property or services rather than goods, which complicates the use of tariffs. Studio executives have expressed confusion about how the measure could be enforced in an era where movies are funded, shot, and edited across multiple borders.

The president had first floated the idea in May without offering details, leaving the industry “flummoxed,” especially over how co-productions would be classified. Modern blockbusters often combine American financing with European post-production, Asian special effects, and international talent, raising questions about how the line between foreign and domestic films would be drawn.

Shockwaves Beyond Hollywood

While the policy has alarmed Hollywood studios, its ripple effects would extend far beyond the United States. Foreign film industries that have steadily grown their footprint in the US market now face the prospect of losing access or watching ticket prices double under tariffs.

• China, now the world’s second-largest movie market, has long used cultural exports as soft power. Big-budget titles such as The Wandering Earth and Wolf Warrior 2 have found audiences abroad, while Chinese studios increasingly partner with American distributors. A 100 percent tariff would make these imports far more expensive, eroding their competitiveness and possibly pushing Beijing to retaliate against US films seeking entry into Chinese theaters.
• India, home to Bollywood, Tollywood, and a sprawling regional film ecosystem, would also be affected. Indian films like RRR and Pathaan have enjoyed breakthrough success with US audiences in recent years, boosting the global profile of the industry. A tariff would blunt that momentum, especially for mid-budget productions that rely on the diaspora market in North America. For Indian studios, which already operate on thinner margins than Hollywood, doubling the cost of entry into the US market could prove prohibitive.
• Nigeria’s Nollywood, the world’s second-largest film industry by volume, has built an expanding audience base in the United States through streaming platforms and theatrical releases targeting African diaspora communities. Films like The Wedding Party and King of Boys have gained international traction. With a 100 percent tariff, Nigerian films could lose affordability and exposure in US cinemas, slowing Nollywood’s global expansion at a critical moment when it is beginning to gain wider recognition.
• Europe has long been a steady exporter of prestige cinema, with French, British, Italian, and Spanish films regularly securing US theatrical releases, awards recognition, and festival distribution. Co-productions between Europe and Hollywood are also a pillar of the industry, from arthouse dramas to streaming hits. A tariff would complicate financing structures and undermine cultural exchange, potentially reducing the flow of European films into the US while inviting retaliatory measures from Brussels.

Hollywood’s Global Dependence

The irony is that Hollywood itself depends heavily on foreign markets. Overseas audiences account for the majority of box office receipts for many blockbusters, while production is often outsourced abroad for cost and tax benefits. Trade analysts warn that targeting foreign films could spark retaliation from China, India, or Europe, making it harder for American studios to distribute their own films internationally.

Trump has introduced uncertainty into one of America’s most successful export sectors by venturing into cultural industries. Films and related services have traditionally delivered a trade surplus for the US, with Hollywood productions dominating global markets. Tariffs, analysts argue, risk undermining that advantage.