Film Insiders Say Trump's Proposed Hollywood Tariffs Would 'Destroy' Entertainment Industry

U.S. President Donald Trump's announcement via social media Sunday evening that he would "begin the process of instituting a 100% Tariff" on films produced in foreign countries was met with confusion and shock in the U.S. entertainment industry and abroad, with filmmakers cautioning that such extreme levies would render many productions impossible and do nothing to save what the president called the "dying" movie industry.

On his social media platform, Truth Social, Trump took issue with "incentives" that have pushed filmmakers to shoot projects outside of the U.S., not only saying that the industry centered in Hollywood is "being devastated" but also suggesting that simply traveling to other countries to produce films leads to foreign "propaganda" being embedded in the final products.

"This is a concerted effort by other Nations and, therefore, a National Security threat," said Trump. "It is, in addition to everything else, messaging and propaganda!"

Commerce Secretary Howard Lutnick suggested the administration is moving to implement the president's plan, writing, "We're on it" in his own social media post.

While the vast majority of U.S. films are already produced mainly in the U.S.—providing jobs to actors, editors, and other production staff—many major studios including streaming giants Amazon and Netflix have brought their production shoots to cities like Toronto and Dublin, where local leaders have offered large tax breaks.

California Gov. Gavin Newsom, a Democrat, is currently addressing the effects those foreign tax incentives have had on working film professionals in Southern California—including makeup artists, camera operators, electricians, and other middle-class workers—by pushing for a tax credit for studios to film locally. The state Legislature is currently considering that proposal.

"Putting a tariff on movies shot outside the U.S. will increase the cost of shooting and the studios will lobby the exhibitors to raise ticket prices and then the audience will skip the theater and then... well you see where this is going."

But by "instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands," film industry veterans said Trump would not succeed in bringing production jobs back to the United States—but would rather make all but the biggest budget films impossible to produce.

"This is NOT the effect this is going to have," one industry professional toldDeadline. "It will make low- and mid-level productions completely unproducable, hence destroying many jobs from producer assistants to writers to post-production. Further, it will lessen the amount of big budget content created because the studios won't be able to make as much because the cost of production will be more."

An official at a top U.S. film company that produces movies both domestically and internationally told Deadline that international film distributors will be less likely to buy U.S. films under Trump's new tariff plan.

"It affects domestic distribution deals but it also impacts equity players who have money in movies because their films will suddenly be worth less money," they said. "We won't be able to make movies for the same budgets, actors won't get paid the same fees, and the list goes on. Simply, it would destroy the independent sector."

Exactly how the proposed policy would be implemented was unclear from Trump's social media post, but U.K.-based producer told Deadline that "leading independent distributors would all be out of business if it's them" who have to pay the tariffs.

A source close to the White House toldPolitico that the tariff policy originated with actor Jon Voight, a strong supporter of Trump who—along with Mel Gibson and Sylvester Stallone—has been named one of Trump's "special ambassadors" to Hollywood.

Deadlinereported last week that Voight was meeting with studios and union representatives in Hollywood to discuss a plan to revive the film industry, with "a federal tax incentive" expected to be a main component.

Voight's fellow ambassador, Gibson, is one Hollywood player who could be directly impacted by Trump's proposed tariffs; his film, a sequel to The Passion of the Christ, is scheduled to begin filming in Italy this summer.

"Putting a tariff on movies shot outside the U.S. will increase the cost of shooting and the studios will lobby the exhibitors to raise ticket prices and then the audience will skip the theater and then... well you see where this is going," wrote producer Randy Greenberg in a post on LinkedIn after Trump announced his plan.

The Washington Post reported that Trump could rely on a provision of a 1962 trade law that he has used in the past to impose tariffs on goods; the law gives the Commerce Department 270 days to complete an investigation into alleged national security threats created by certain imports.

"Other nations have stolen our movie industry," Trump told reporters on Sunday. "If they're not willing to make a movie inside the United States, we should have a tariff on movies that come in."

At The Guardian, film editor Andrew Pulver wrote that Trump's plan appears aimed at destroying "the international film industry":

The effect of any tariff is likely to be dramatic. Recent figures from the British Film Institute (BFI) show that in 2024 £4.8 billion ($6.37 billion) of production spend on film and high-end TV in the U.K. came from international sources, 86% of the total spent on film and TV made in Britain. In Australia, the film industry stands to lose up to AUS $767 million. A program of studio building in the U.K., designed to increase capacity and therefore revenue, is likely to feel the chill almost immediately. And the effect on the domestic industry in the U.S. is forecast to be adverse, as production costs rise without the injection of overseas tax incentives, with mid-level projects potentially wiped out.

Despite Trump's claim that the industry is "dying," according to the Motion Picture Association's latest economic impact report, the U.S. film industry had a $15.3 billion trade surplus in 2023 and $22.6 billion in exports.

An executive at a U.S. distribution company expressed hope to Deadline that Trump's threat would encourage "desperately needed increases in U.S. state tax incentives being implemented ASAP."

"Can't see his target here," they said, "other than confusion and distraction."