Trump announces a 100% tariff on films made outside the US, but it's not clear how the new rules will work
US President Donald Trump unexpectedly announced a 100% tariff on all films produced outside the country. In his statement, he called foreign film productions a "threat to national security" and accused other countries of trying to lure American filmmakers with tax breaks.
Here's What We Know
Trump published a post on Truth Social, where he said that the US film industry is "dying fast" and that Hollywood and other regions of the US are "being devastated" by the policies of other countries. He instructed the US Department of Commerce and the US Trade Representative to immediately begin the process of imposing a 100% tariff on all films shot abroad and imported to the US.
Trump emphasised that foreign governments are offering generous incentives to attract US studios to film outside the US, and called it a "coordinated attack" and "propaganda". He also said that only film production in the US could save the industry.
It is not yet clear how the new tariff will work and which films will be affected. It is known that many Hollywood blockbusters, including the new Marvel, Star Wars and Avatar films, are filmed partially or entirely abroad due to tax incentives in the UK, Australia and New Zealand. It is unclear whether the tariff will apply only to foreign films or also to US studios filming outside the US.
It also remains unclear how the new duties will affect projects already completed or in progress, and why TV series, which are an important part of the market today, are not affected.
Trump's announcement has already sparked a wave of discussion in the film industry and among international partners. The new tariff could lead to higher ticket prices, fewer US premieres, and even retaliatory measures by other countries that could limit the access of US films to their markets.
For now, the industry is waiting for clarification on the details and mechanism of the new tariff.
Source: IGN
