Trade War Ignites in Movie Theaters: Trump Plans to Impose Heavy Taxes to Strike Foreign Films, Forcing Hollywood to Return to the U.S. for Filming.

On Sunday (May 4th local time), US President Trump posted on social media that he had authorized the US Department of Commerce and the US Trade Representative to immediately initiate procedures to impose a 100% tariff on all foreign-made films entering the US. Trump wrote on Truth Social, "The American film industry is rapidly declining," and attributed it to "other countries offering various incentives that have attracted our filmmakers and film companies to leave the United States." He added, "Hollywood, as well as many other areas in the United States, are being hit hard. This is organized action by other countries, thus constituting a national security threat. In addition, it also relates to information dissemination and propaganda!" Trump concluded, "We want movies to be filmed in the United States again!" Media reports stated that before releasing this post, Trump met with the well-known American actor Jon Voight and his agent, Steven Paul, at Mar-a-Lago. In January of this year, Trump appointed Voight and two others as "Hollywood ambassadors." Voight and Paul submitted a plan to Trump aimed at providing more federal tax incentives for American film and television production, including expanding existing tax breaks and reinstating expired incentives. The report specifically mentioned that the plan developed by the two did not include a suggestion for imposing tariffs, and it was Trump who mentioned the idea of taxation during the meeting. It is understood that many Hollywood films involve global production, including overseas locations and post-production, in part to reduce film costs. Media analysis points out that Trump's plan to impose tariffs on the film industry lacks details, it is currently unclear how the US government will operate, and it is also uncertain how films will be valued. Additionally, whether potential tariffs will apply to completed films or only to new projects is also a major question. Several upcoming films include a significant amount of overseas shooting, such as Disney's Marvel film "Fantastic Four: First Step," which was filmed in the UK and Spain, and Universal Pictures' "Jurassic World: Rebirth," which involves locations in Thailand, the UK, and Malta. Foreign film industry responses Irene Gardiner, chair of the New Zealand Screen Production and Development Association (SPADA), stated that Trump's statement was "confusing." "He seems to be worried about American films shooting overseas and post-production, but then he says he wants to tax foreign-made films. So is he saying that films made in New Zealand will be taxed to be shown in the US? Or that American films made here will also be taxed?" Gardiner pointed out, "In either case, it is regrettable. We welcome American productions being made here - it is beneficial for the local economy and film industry." New Zealand Prime Minister Christopher Luxon also commented, stating that the country's film industry has "amazing talent, advanced technology, good job opportunities, and we will continue to vigorously advocate for this." Due to New Zealand's natural landscapes and production environment, the country has long been a popular location for American film shoots, with the "Lord of the Rings" trilogy and "The Hobbit" series both filmed in New Zealand. The industry organization Screen Producers Australia stated that this news will "shake up globally." Matthew Deaner, CEO of the association, said in a statement, "For the Australian film industry, this once again underscores the need for the government to take swift action to build a strong local industry that can withstand global shocks." Shrinking US film industry In recent years, the US film industry has experienced a contraction, with reasons including: media companies reducing budgets to increase profits during the transition from traditional television to streaming media; at the same time, streaming platforms are expanding globally, producing local films for international markets. Data from research company ProdPro shows that US film production spending decreased by 28% from 2021 to 2024. In the first quarter of 2025, film production in the greater Los Angeles area in the US dropped by 22% year-on-year, reflecting the continued loss of film business in California. Countries like Canada, Australia, and the UK have attracted more production projects due to tax incentives and lower production costs. This article is republished from "Finance & Economics"; GMTEight editor: Xu Wenqiang.