84°
Trump announced his plan for the movie tariffs in a post on his social media platform Truth Social on Sunday, May 4. His post claimed he was authorizing the Department of Commerce and the United States Trade Representative to begin instituting the 100% tariffs on films made outside the US.
It's unclear how tariffs would be imposed on movie production and distribution.
"The Movie Industry in America is DYING a very fast death," 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. It is, in addition to everything else, messaging and propaganda!"
Trump tried to clarify his latest tariff idea to reporters outside the White House shortly after his post.
"Other nations, a lot of them, have stolen our movie industry," he said. "If they're not willing to make a movie inside the United States, then we should have a tariff when movies should come in, and not only that, governments are actually giving big money. I mean, they're supporting them financially. That's sort of a threat to our country, in a sense, and it's been a very popular thing."
Trump's movie tariff proposal appears to go against the International Emergency Economic Powers Act, which he has invoked to implement his sweeping tariffs. His duties have included a 10% tariff on a vast majority of countries, a 145% tariff on Chinese goods, and 25% tariffs on aluminum, steel, and many vehicle imports.
The IEEPA says the President's emergency tariff authority cannot regulate "the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds."
A spokesperson from California Gov. Gavin Newsom said that provision prevents Trump from imposing movie tariffs.
"We believe he has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law," Gov. Newsom's senior communications advisor Bob Salladay told Deadline.
Top entertainment executives called the proposed tariff a threat to the global nature of film and television. One source speaking to The Hollywood Reporter warned about devastation for what's known as "Hollywood North" in Canada, saying, "Vancouver is over."
Movie production studios have long relied on international shoots, often drawn by tax incentives.
Some major 2025 releases were shot globally, including "Mission: Impossible – The Final Reckoning," the "John Wick" spinoff "Ballerina," and "Avatar: Fire and Ash." Future releases in the "Avengers" and "Star Wars" franchises are also planning to film or are under production abroad.
Following the announcement, Netflix shares dropped 4% early on Monday, May 5, wiping out $20.4 billion in market value. Disney, Warner Bros. Discovery, Paramount, and Comcast also saw losses exceeding the broader market index, Forbes reported.
According to market research firm Ampere Analysis, 51% of Netflix's $15 billion content budget in 2025 is going to productions outside North America, with Europe seeming to benefit the most. Marvel, Lucasfilm, DC Studios, and many independent producers rely on international production hubs.
The uncertainty around movie tariffs also threatens US film production outside Hollywood.
In New York, the movie and TV industry brought in $924 million to Westchester County's economy, the county said on Wednesday. April 30. Production jobs rose 51% year-over-year, with more than 3,000 people working in the sector.
Several major TV series were filmed in Westchester, including "The Equalizer," "FBI: Most Wanted," "Law & Order," "Poker Face," and "Severance."
"Westchester has firmly established itself as a premier destination for production," said county executive Ken Jenkins. "We're proud to provide the environment, the workforce and the commitment that keeps this industry growing — and we remain dedicated to building even greater opportunities for our residents and small businesses in the years ahead. The future of film in Westchester is just getting started."
Back in Los Angeles, the nonprofit FilmLA said movie and TV production has dropped nearly 40% over the past decade, CNBC reported. A recent ProdPro survey ranked California sixth as a preferred filming location, behind Toronto, Great Britain, Vancouver, Central Europe, and Australia.
At the same time, the US film industry still posted a $15.3 billion trade surplus in 2023, according to the Motion Picture Association, showing that American-made content remains a leading export.
Click here to follow Daily Voice Pascack Valley and receive free news updates.
