President Donald Trump’s proposal to impose a 100% tariff on films produced outside the United States has sparked concern across the entertainment world. Industry experts fear that the plan could severely damage Hollywood and lead to massive job losses.
“This tariff could effectively ‘kill’ the American movie industry,” warned William Reinsch, a former official at the US Commerce Department and senior fellow at the Center for Strategic and International Studies. “We have a lot more to lose than to gain.”
Scott Roxborough, Europe bureau chief of The Hollywood Reporter, echoed these sentiments. “The most likely consequence is not that more productions will be done in America, but probably that just fewer productions will be made,” he said.
Critics argue that instead of bringing film production back to the US, the tariff might lead to a significant reduction in the number of movies being produced worldwide. Moreover, there is concern that other countries could retaliate with their own tariffs, hurting American studios in global markets.
“It may create a situation where the tariffs in America are causing more harm than good,” said Eric Deggans, a film critic from NPR. “Other countries may respond by placing tariffs on American films, making it harder for these films to make profits overseas.”
A report from the US Motion Picture Association highlighted the stakes involved. The US is a net exporter of film and television content, generating $230 billion in total sales in 2023 and supporting over 2.3 million jobs. Protectionist measures like the proposed tariffs could undermine this success.
Anthony Moretti, an associate professor at Robert Morris University, believes the move could isolate the US culturally and economically. “Imposing tariffs or other barriers on foreign films will not benefit the US movie industry,” Moretti wrote in an opinion piece. “Such choices risk turning the country into an isolated cultural island.”
The financial impact on companies could be substantial. Investment bank Citi warned that streaming giant Netflix could see a 20% drop in earnings per share and an annual increase of $3 billion in costs under a worst-case scenario.
As the debate continues, many are left wondering about the future of the US film industry and the potential ripple effects worldwide.
