Trump’s Plan to Impose 100% Tax on Foreign-Made Movies Sparks Concern
President Donald Trump has announced plans to impose a 100% tax on movies made outside the United States, citing national security concerns and the need to protect the American film industry. The move has been met with skepticism and concern from industry experts, who warn that it could have far-reaching consequences for the global film industry.
According to Trump, the American movie industry is “dying” due to the incentives offered by other countries to attract filmmaking away from the US. However, experts argue that the US film industry is already a dominant player in the global market, with American-produced movies generating $22.6 billion in exports and $15.3 billion in trade surplus in 2023.
How Would the Tax Work?
The details of how the tax would work are still unclear, as movies and TV shows can be transmitted digitally without going through ports. It is also unclear what this would mean for US movies filmed on foreign locations, such as James Bond and Jason Bourne. Experts warn that the tax could discourage US studios from shooting abroad, which could limit options and hurt both Hollywood films and the global industry that helps create them.
Ann Koppuzha, a lawyer and business law lecturer at Santa Clara University’s Leavey School of Business, explains that film production is more like an applied service that can be taxed, not tariffed. However, taxes require Congressional approval, which could be a challenge even with a Republican majority. She notes that “there’s simply no precedent” for tariffing foreign-made movies, and that the Trump administration could encounter the same practical hurdles if they try to extend similar threats to other forms of intellectual property, like music.
Potential Consequences
Experts warn that the tax could have significant consequences for the global film industry, including retaliation from other countries. Heeyon Kim, an assistant professor of strategy at Cornell University, notes that international markets make up a large chunk of Hollywood’s total box office revenue, accounting for over 70% last year. She warns that tariffs and potential retaliation from other countries could result in billions of dollars in lost earnings and thousands of jobs.
Barry Appleton, co-director of the Center for International Law at the New York Law Center, warns that other countries may retaliate with levies on American movies or other services. He notes that “Brand America is way, way ahead” in the film industry, and that the tax could “cook the golden goose that’s laying the golden eggs.” Steven Schiffman, a longtime industry veteran and adjunct professor at Georgetown University, agrees, noting that “when you make these sort of blanket rules, you’re missing some of the nuance of how production works.”
The International Alliance of Theatrical Stage Employees, which represents behind-the-scenes entertainment workers across the US and Canada, has recommended that the administration implement a federal production tax incentive and other provisions to “level the playing field” while not harming the industry overall.
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