Overview
- President Donald Trump reiterated on Truth Social that he will impose a 100% tariff on any movie made outside the United States, offering no timeline or implementation details after first floating the idea in May.
- Trade and legal analysts note that films are typically treated as services rather than goods, past rulings limit use of IEEPA on informational materials, and a Section 232 national security rationale would likely face court challenges.
- Studios and the Motion Picture Association were blindsided, with executives seeking guidance as unions and lawmakers press for expanded tax incentives instead of penalties, a view echoed by Gov. Gavin Newsom and George Clooney.
- Global production hubs from Canada and the UK to Australia and South Africa warn of lost jobs, disrupted co-productions, and investment risks, with some officials publicly pledging to defend their screen industries.
- Industry figures question how a tariff would be defined or enforced given cross-border financing, shooting, VFX and digital distribution, and caution that foreign markets supply more than 70% of box-office revenue.