Overview

• President Trump announced plans to impose a 100% tariff on films produced abroad and shown in the U.S., citing national security concerns and a need to protect the domestic film industry.
• The Commerce Department and U.S. Trade Representative have been directed to begin implementation, but no specifics on timing or scope have been released.
• Hollywood studios and industry executives expressed concern over the lack of guidance, warning of potential economic fallout and disruptions to international partnerships.
• China, which already restricts foreign films through quotas, and European lawmakers signaled likely retaliation, with the latter questioning the legality of the proposed tariffs under international agreements.
• The move is part of a broader trade escalation under Trump’s second term, targeting industries ranging from semiconductors to cultural goods.