Declares industry decline a ‘National Security Threat’

Los Angeles, US – Former US President Donald Trump has announced plans to impose a 100% tariff on all films produced outside the United States, citing what he described as a steep decline in the domestic film industry and labelling the issue a matter of national security.

In a post on ‘Truth Social’ on Sunday, Trump stated, “The American movie industry is dying a very fast death” due to foreign incentives that are drawing productions away from US soil. He described the situation as “a concerted effort by other Nations and, therefore, a National Security threat,” further asserting that the issue also involved “messaging and propaganda.”

Trump said he had instructed relevant government agencies, including the Department of Commerce, to begin implementing the tariffs immediately. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” he declared.

Commerce Secretary Howard Lutnick responded to the announcement via social media platform X, simply stating, “We’re on it.” However, neither Trump nor Lutnick provided specific details on how the tariffs would be enforced. It remains unclear whether the levies would apply to streaming platforms in addition to theatrical releases, or how they would be calculated—by production costs, distribution value, or box office performance.

The Motion Picture Association, which represents major studios, declined to comment, while studio executives reportedly spent Sunday evening attempting to interpret the potential implications.

In January, Trump appointed actors Jon Voight, Sylvester Stallone, and Mel Gibson to a committee aimed at reviving American film production, promising to make Hollywood “bigger, better and stronger than ever before.”

For over a decade, film and television production has increasingly shifted away from Hollywood to overseas locations that offer attractive tax incentives. Countries such as Canada, the UK, Australia, and New Zealand have emerged as leading destinations for high-budget productions.

According to data from the research firm ProdPro, roughly half of the spending by US producers on projects exceeding $40 million in 2023 occurred outside the United States. FilmLA, a non-profit monitoring the industry, reported that production in Los Angeles has dropped by nearly 40% over the past ten years.

Trump’s announcement drew swift responses from leaders in Australia and New Zealand, who pledged to defend their local film industries. Australia, for instance, has served as the filming location for several Marvel superhero films, while New Zealand is famously home to ‘The Lord of the Rings’ franchise.

Critics warn that the proposed tariffs could backfire. William Reinsch, a former senior official at the Department of Commerce and now a fellow at the Center for Strategic and International Studies, cautioned: “The retaliation will kill our industry. We have a lot more to lose than to gain.” He also questioned the legal basis for invoking national security in this context.

Hollywood unions and producers have long urged California Governor Gavin Newsom to bolster the state’s film tax incentives to keep production competitive domestically. A recent survey by ProdPro found California ranked sixth among preferred filming locations for the next two years—trailing Toronto, the UK, Vancouver, Central Europe, and Australia.

Trump’s proposal is the latest in a series of protectionist trade policies that echo his previous administration’s aggressive stance, which prompted economic tensions and fears of recession.