Hollywood is in an uproar after U.S. President Donald Trump announced plans to impose a 100% tariff on all movies produced outside the United States. Trump’s declaration came via a social media post on Sunday, stating, “The movie industry in America is dying a very fast death.”
The proposed policy has sparked immediate backlash from industry professionals and media outlets. Critics warn that such a tariff would significantly increase production costs and could undermine the global competitiveness of major American studios.
CBS News correspondent Carter Evans reported widespread concern in Hollywood, calling the situation a “five-alarm fire,” especially for low-budget and independent filmmakers. “It’s going to stifle creativity,” Evans noted. “If they are forced to shoot in the U.S., that may change the plot lines of some scripts and stretch budgets even further.”
Industry executives are expressing alarm over the potential impact. According to CNN Business, film and streaming leaders are “downright apoplectic,” fearing the decision could decimate the industry. The stock market reacted swiftly, with shares of major entertainment companies like Netflix declining on Monday amid investor concerns.
The ramifications extend beyond U.S. borders. The UK’s media union Bectu warned that the tariff could “deal a knock-out blow” to the industry and its thousands of freelancers. Film critic Eric Deggans highlighted the global stakes, stating that retaliatory tariffs from other countries could severely reduce overseas profits—a major concern since international box offices account for about two-thirds of Hollywood’s revenue.
Former Commerce Department official William Reinsch echoed these warnings: “The retaliation will kill our industry. We have a lot more to lose than to gain.”
From an economic standpoint, the Hollywood Reporter pointed out that while the proposed tariffs might make shooting abroad more expensive, they wouldn’t make domestic production any cheaper. Benjamin Swinburne, a media analyst at Morgan Stanley, warned investors that 100% tariffs “would lead to fewer films, more expensive films, and lower earnings for all in the business.” He emphasized that modern film production often involves multiple countries for writing, production, editing, and visual effects.
Entertainment lawyer Jonathan Handel criticized the idea as impractical. “It makes no sense,” he told AFP. “If a stunt requires Tom Cruise climbing the Eiffel Tower, are we supposed to use a replica in Las Vegas? Tariffs would reduce production, increase costs, and damage distribution.”
Nicholas Tabarrok, producer at Darius Films, labeled the move as “erratic, ill-conceived, and poorly considered.” Speaking to the Hollywood Reporter, he said, “This is an ‘everyone loses, no one gains’ policy.”
As voices from across the film world condemn the proposal, it’s clear that rather than reviving the American film industry, Trump’s tariff threat could push it closer to decline.
