President Donald Trump has proposed a 100% tariff on all films produced outside the United States.
The goal, he says, is to bring movie production back to US soil.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump wrote on social media Sunday night.
He argues that foreign financial incentives have lured Hollywood productions overseas, harming the domestic film industry.
But experts warn the move could raise production costs, reduce the number of films made, and increase ticket prices.
“Essentially what Trump is trying to do is make it untenable for US movie studios to produce movies abroad,” said S. Mark Young, a professor at USC’s Marshall School of Business.
“But it would cost more money for film production in the US Where’s that going to come from?” he added.
Why Are Studios Filming Abroad?
Streaming has exploded over the past decade, driving demand for more content.
According to consulting firm Olsberg SPI, 599 scripted series aired in the US in 2022—more than double the number from 2012.
To meet this demand, studios have chased better financial deals worldwide.
Incentives for film production have jumped nearly 40% globally over the last seven years.
Even within the US, states are competing with California and New York by offering attractive production deals.
“There are a whole range of reasons for why production comes and goes,” said Jennifer Porst, a film and media professor at Emory University.
“Part of that is due to financial incentives,” she noted, along with pandemic disruptions, labor strikes, and a global streaming audience.
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What Exactly Is Trump Proposing?
Trump says overseas film production has “devastated” parts of the country.
He claims, without evidence, that foreign film incentives are a “national security threat.”
The proposal directs the U.S. Trade Representative to start the process of imposing a 100% tariff on foreign-made films.
The White House says the plan is not yet finalized.
“Although no final decisions… have been made, the Administration is exploring all options… while Making Hollywood Great Again,” said deputy press secretary Kush Desai.
But experts aren’t sure how such a tax would even work.
“If it’s a tax on people going abroad to shoot, what is the tax on?” asked NYU anthropology professor Tejaswini Ganti.
“Is it going to be, ‘Here’s the final budget and we’ll add a tax on it’? What is the thing being taxed?”
She also questioned the national security angle.
“If a Hollywood film is shot, say, in the United Kingdom, I don’t understand how that is a national security threat,” Ganti said. “It’s still an American story, just shot somewhere else.”
What Would the Impact Be?
Analysts say the policy could backfire.
Studios might be forced to choose between higher taxes abroad or expensive domestic production.
“President Trump figured out the fastest way to dramatically reduce the number of films produced each year in America,” tweeted media analyst Rich Greenfield.
He added rocket emojis to emphasize soaring costs.
“It would be a disaster,” said Young. “You can’t wave a magic wand and expect more money to appear.”
Higher costs could mean fewer midsize or independent films.
And for moviegoers, ticket prices may rise.
“Could it lead to higher ticket prices? Sure,” Ganti said.
(ABC News)
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