United States: President Trump’s call for a 100% tariff on films made outside the US has caused confusion and concern among Hollywood executives and film financiers.

Many in the industry are shocked by the proposal and worry it could severely damage the film business. Some say it’s nearly impossible to enforce and likely outside the president’s legal power. However, others see it as an attempt to highlight the ongoing issue of “runaway production,” where movie and TV projects are increasingly filmed overseas—costing Americans jobs.

The uncertainty has already impacted the market. Stocks for companies like Netflix dropped following Trump’s remarks. United Talent Agency Vice Chairman Jay Sures explained that studios often film abroad because it’s cheaper, and this proposed tariff could bring production to a halt—especially damaging after the industry just experienced strikes and a slowdown in content.

Many doubt the tariff will ever be enacted. Films are considered intellectual property or services, not goods, which usually aren’t taxed like imports. There’s also skepticism that Trump’s argument—that foreign film production poses a national security risk—would hold up legally, according to CNN.

Still, some entertainment leaders are taking the idea seriously. Sources say multiple executives have already reached out to Commerce Secretary Howard Lutnick. Lutnick responded on social media, saying, “We’re on it.”

Trump may just be starting the conversation. He told reporters he plans to meet with Hollywood leaders before making any final decisions. “I want to make sure they’re happy with it,” he said.

Trump has a history of showing interest in Hollywood. When he first took office, he named actors like Jon Voight and Sylvester Stallone as unofficial representatives of the industry. Over the weekend, he met with Voight again to talk about ways to revive American film production. A plan involving tax breaks—not tariffs—was reportedly discussed.

The White House says no final decisions have been made, but they are exploring “all options” to support both national security and the US entertainment industry. This may offer hope to film leaders who have long preferred incentives—such as federal tax breaks—over penalties like tariffs.

Hollywood No Longer Just in Hollywood

Film and TV production has gradually moved away from Hollywood to other US states and foreign countries that offer financial benefits. Many projects—ranging from small indie films to big studio blockbusters—are now being made in places like the UK, France, Germany, Hungary, and especially Canada, as per CNN.

Trump told reporters on Sunday that other countries are “stealing” America’s film industry by luring productions away. He proposed placing tariffs on foreign-made films, even those financed by US companies but shot overseas.

The Motion Picture Association (MPA), which represents major studios, hasn’t commented directly. However, a 2023 MPA report shows that the US film industry has a \$15.3 billion trade surplus, exporting far more content than it imports. It’s unclear whether this figure includes movies made abroad by US studios.

Many Unanswered Questions

Trump’s proposal raises many questions. Would a movie filmed partly in another country still be taxed? What if only a small part of it—say, two minutes—was shot overseas? Would films like Dune, Harry Potter, or Emily in Paris be affected?

Some insiders wonder if this is a political move aimed at Hollywood, which tends to lean left. One person joked, “Is he trolling us because we didn’t vote for him?” according to CNN.

Others question whether Trump understands how globalized modern film production has become.