President Trump’s proposed 100% tariff on foreign films has sent shockwaves through Hollywood, causing immediate stock drops for industry giants like Disney and Netflix as America prepares to reclaim its entertainment dominance.
Key Takeaways
- President Trump announced plans for a 100% tariff on foreign-made films to combat the exodus of film production from the United States
- Actor Jon Voight and his manager presented Trump with a comprehensive plan including tariffs, tax incentives, and infrastructure subsidies
- Trump clarified he wants to help the industry and may reconsider after consulting with Hollywood studios
- The White House confirmed no final decision has been made as they continue exploring options
- Experts warn tariffs could trigger retaliation from other countries and harm America’s strong film export market
Trump Declares Hollywood Production Crisis a National Security Threat
In a bold declaration that sent ripples through the entertainment industry, President Trump announced his intention to implement a 100% tariff on foreign-made films. The announcement came via his Truth Social platform, where he laid out his concerns about the declining American film industry. “The Movie Industry in America is DYING a very fast death,” President Donald Trump posted. “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 other Nations and, therefore, a National Security threat.”
The president’s concerns are rooted in economic reality. Production spending on American-made films and television has declined significantly in recent years, while foreign production spending has increased. Tax incentives offered by countries like Canada, the UK, and Australia have become the primary consideration for studios when selecting filming locations. This exodus of production has led to job losses throughout America’s entertainment hubs, from Hollywood to Atlanta, impacting not just actors but thousands of crew members, technicians, and supporting businesses.
Market Reaction and Administration Response
The immediate market reaction to Trump’s announcement was swift and negative. Share prices for major entertainment companies including Disney and Netflix temporarily dropped as investors processed the implications of such a dramatic policy shift. The entertainment industry, which has become increasingly globalized over the past decade, now faces potential disruption to established business models that rely on international production capabilities and worldwide distribution networks.
“I’m not looking to hurt the industry, I want to help the industry,” Trump said, indicating flexibility in his approach and a willingness to work with stakeholders to achieve the best outcome for American entertainment.
Commerce Secretary Howard Lutnick confirmed the administration is actively working on the proposal, simply stating “We’re on it.” However, White House spokesperson Kush Desai clarified that no final decision has been made, indicating the administration is still in the exploratory phase. This measured response suggests that Trump is serious about addressing the issue but remains open to input from industry leaders before finalizing any policy.
Jon Voight’s Comprehensive Industry Plan
The genesis of this policy proposal can be traced to conservative actor Jon Voight and his manager, who presented Trump with a comprehensive plan to revitalize domestic film production. Their proposal included not just tariffs but also tax incentives, changes to tax codes, co-production treaties, and infrastructure subsidies. This multi-faceted approach acknowledges the complex economic factors that have driven production overseas, including both incentives offered by foreign governments and the strength of the U.S. dollar.
“We look forward to working with the administration, the unions, studios, and streamers to help form a plan to keep our industry healthy and bring more productions back to America,” Voight stated, emphasizing the collaborative approach needed to address the industry’s challenges. CNBC
Voight’s involvement signals support within the entertainment industry itself for Trump’s America-first approach to film production. While Hollywood has long been perceived as a liberal stronghold, there are clearly influential figures within the industry who recognize the economic damage being done to American workers by the offshoring of production. The involvement of industry insiders like Voight may help bridge the gap between Trump’s administration and Hollywood’s decision-makers.
Potential Challenges and Industry Concerns
Despite the patriotic intent behind the proposed tariffs, implementation would face significant challenges. Unlike physical goods such as DVDs, intellectual property like films is difficult to target with traditional tariffs. Additionally, the global nature of modern film production, which often involves multinational financing, cast, crew, and locations, makes it difficult to define what constitutes a “foreign” film. These complexities help explain why the administration is proceeding cautiously rather than rushing to implement the tariffs.
“I know it’s not the U.S. government or the President’s job to understand how movies are made, but if you understand how complex and interconnected the global film market is—both on a production and a distribution level—it’s devastating and doesn’t make any sense,” says entertainment consultant Kathryn Arnold.
Another potential concern is the possibility of retaliatory measures from other countries. The United States is currently a net exporter of film services, meaning American movies earn more abroad than foreign films earn in America. Tariffs could potentially lead other nations to impose similar restrictions on American films, potentially doing more harm than good to the industry’s bottom line. This complex interplay of economic factors explains why Trump has indicated a willingness to reconsider the tariff if there is significant pushback from industry stakeholders.
A Path Forward for American Entertainment
As discussions continue, it’s becoming clear that the administration’s goal is not simply to punish foreign production but to create conditions that make American production more competitive. The comprehensive plan submitted by Voight includes positive incentives like tax breaks that could make staying in America financially viable for studios. This carrot-and-stick approach reflects Trump’s background in business negotiation, where creating leverage is essential to achieving favorable outcomes.
“According to ProdPro’s 2025 survey of studio executives, when asked what are the top criteria they consider when selecting a filming location, tax incentives is the 1 consideration.”
The coming weeks will be crucial as the administration consults with industry leaders and refines its approach. While the initial announcement of 100% tariffs created uncertainty, the subsequent clarifications indicate a more nuanced policy may emerge. What remains clear is President Trump’s commitment to bringing film production back to American soil. Whether through tariffs, incentives, or a combination of policies, the goal of revitalizing Hollywood and other American production centers remains a priority for the administration.
