Trump’s Newly Announced Tariff Sends Movie Industry Into Panic

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Hollywood is up in arms after Donald Trump’s announcement of a 100% tariff on “any and all” movies produced in “foreign lands.”

Trump made the announcement Sunday on Truth Social, sending filmmakers and studios reeling.

“The Movie Industry in America is DYING a very fast death. 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,” Trump said. Both Indie films to blockbuster movies are often being filmed outside of the United States.

“If this goes the distance, it will decimate the industry,” a producer in London told Variety about the tariff announcement.

WASHINGTON, DC – MAY 05: U.S. President Donald Trump delivers remarks on the NFL Draft in the Oval Office of the White House on May 05, 2025 in Washington, DC. Joined by NFL Commissioner Roger Goodell (C), Washington Commanders owner Josh Harris (2nd-L) and Washington, DC Mayor Muriel Bowser, Trump announced that the 2027 NFL Draft will be held on the National Mall. (Photo by Anna Moneymaker/Getty Images)

Trump’s announcement continued, “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.”

The president concluded by writing, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”

“But you can’t just stop production,” the producer in London argued, according to Variety.

“When does it come into effect? What about movies in pre-production, that are shooting or in post? Would you just double their costs. None of this has been thought through.”

Another U.K. producer argued that the tariff “makes no sense.”

“It implies that a U.S. film is meant to shoot in the U.S. But the ‘Harry Potter’ films, ‘Lord Of The Rings,’ ‘Schindler’s List,’ ‘Mission Impossible,’ ‘Gladiator,’ ‘Avatar’ and so many more are U.S films that shot overseas for obvious reasons. Do these films have to shoot in the U.S. from now on? It’s an absurd announcement with no meaning nor understanding of storytelling or creative impulses,” he told Variety.

A veteran U.K. producer expressed concern to Deadline. “So U.S. companies can only make U.S. films? James Cameron can’t make Avatar overseas? Who pays the tariffs? Leading independent distributors would all be out of business if it’s them,” the producer said.

TOPSHOT – The Hollywood Sign is pictured during a ceremony marking the 100th anniversary of the first time it was lit, in Los Angeles, California, on December 8, 2023. (Photo by DAVID SWANSON / AFP) (Photo by DAVID SWANSON/AFP via Getty Images)

“This also greatly impacts the streamers, whose model is to produce locally and exploit globally, including in the core U.S. market,” a veteran international seller added.

“Would a foreign-shot production ever see the light of day in America? Would it be taken off U.S. streaming services?”

Others commented that the timing couldn’t be worse, as the start of the Cannes Film Festival is just around the bend.

Democratic California Gov. Gavin Newsom has opposed Trump’s tariffs previously, filing a lawsuit challenging the president’s authority to issue them. Bob Salladay, the governor’s senior advisor for communications, criticized the move in a May 4 statement to Deadline.(RELATED: Donald Trump Restores Mel Gibson’s Gun Rights)

“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,” he said.

However, Newsom’s office issued a statement on the new tariff to The Wrap on May 5. “If the President announces a proposal with more details, we will review it,” the statement read in part.

Mel Gibson, appointed a Hollywood special ambassador by Trump along with Sylvester Stallone and Jon Voight, currently intends to film his sequel to the iconic “Passion of the Christ” in Italy, according to Variety.

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