Trump wants non-U.S. movies to face 100% tariff. Who could it impact?

Incentive programs for years have influenced where movies are shot, increasingly driving film production out of California and to other countries with favourable tax incentives.

President Donald Trump is opening a new salvo in his tariff war, targeting films made outside the U.S.

In a post Sunday night on his Truth Social platform, Trump said he has authorized the Department of Commerce and the Office of the U.S. Trade Representative to slap a 100 per cent tariff “on any and all Movies coming into our Country that are produced in Foreign Lands.”

“The Movie Industry in America is DYING a very fast death,” he wrote, complaining that other countries “are offering all sorts of incentives to draw” filmmakers and studios away from the U.S. “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”

It wasn’t immediately clear how any such tariff on international productions could be implemented. It’s common for both large and small films to include production in the U.S. and in other countries. Big-budget movies like the upcoming “Mission: Impossible — The Final Reckoning,” for instance, are shot around the world.

Incentive programs for years have influenced where movies are shot, increasingly driving film production out of California and to other states and countries with favourable tax incentives, like Canada and the United Kingdom.

Yet Trump’s tariffs are designed to lead consumers toward American products. And in movie theaters, American-produced movies overwhelming dominate the domestic marketplace.

China has ramped up its domestic movie production, culminating in the animated blockbuster “Ne Zha 2” grossing more than $2 billion this year. But even then, its sales came almost entirely from mainland China. In North America, it earned just $20.9 million.

In New Zealand, where successive governments have offered rebates and incentives in recent years to draw Hollywood films to the country, the film industry has generated billions of dollars in tourism revenue driven by the “Lord of the Rings” and “Hobbit” films, which featured the country’s pristine and scenic vistas. More recently, the blockbuster “Minecraft” movie was filmed entirely in New Zealand, and U.S. productions in 2023 delivered $1.3 billion New Zealand dollars (US$777 million) to the country in return for NZ$200 million in subsidies, according to government figures.