In a spectacular escalation of his trade policy, American president Donald Trump announced a 100% price on all foreign manufacturing films on Sunday, saying that the aggressive international tax incentives have widened the American film industry and constituted a threat to national security.
In an article on his social platform Truth, Trump said: “The American cinema industry dies from a very rapid death. It is a concerted effort of other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda. ”
Trump authorized the Ministry of Commerce and other agencies to start the immediate implementation of the new pricing policy, declaring: “We want films to be made in America, again!”
Unclear implementation, industry in shock
Presenting in Reuters, the Secretary of Commerce, Howard Lunick, replied on X with a brief declaration: “We are there.” However, neither Libenick nor Trump provided details on the logistics of the new price. It is not clear if the levy will apply to streaming content, theatrical outings or direct video films, or how the price would be calculated – by production costs, box office income or another measure.
The leaders of the major studios rushed to understand the scope of politics on Sunday evening. The cinematographic association, which represents studios such as Walt Disney, Netflix and Universal Pictures, refused immediate comments.
Industry already under pressure
Trump's decision follows years of declining production in Hollywood, filmmakers choosing more and more to turn abroad to take advantage of generous tax incentives. A 2023 study by ProdPro has shown that about half of all cinematographic and television productions on a large budget ($ 40 million or more) were filmed outside the United States, with Canada, Great Britain, Central Europe and Australia being the main destinations.
A filmla report said that the production of films and television in Los Angeles has dropped almost 40% over the past decade, a trend has worsened by forest fires in January 2025, which have brought out many workers in the city.
In January, Trump appointed Hollywood veterans Jon Voight, Sylvester Stallone and Mel Gibson to a working group aimed at “bringing Hollywood bigger, better and stronger than ever”. The 100% price seems to be part of this wider campaign.
Commercial concerns and global repercussions
Policy has aroused immediate concerns among commercial experts. William Reinsch, a former senior trade manager and now the main member of the Center for Strategic and International Studies, warned that reprisals from other countries could devastate the American entertainment sector.
“Reprisals will kill our industry,” said Reinsch. “We have much more to lose than winning. It would be difficult to justify this for reasons of national security. ”
The global content production market is expected to reach $ 248 billion in 2025, according to Ampere analysis. The main American studios – including Disney, Netflix and Universal – already depend on international markets both for production and distribution.
Trump's pricing announcement is continuing the aggressive commercial actions of its administration, which has shaken the world markets and fueled the fears of the recession.
