Hollywood confounded by Trump's film tariff idea
President Trump proposed a '100% tariff' on movies 'produced in foreign lands'


What happened
Hollywood executives and unions said Monday they appreciated President Donald Trump's help in bringing moviemaking back to Los Angeles but were confused by his proposal, posted late Sunday on social media, for a "100% tariff" on movies "coming into" the U.S. "that are produced in foreign lands." California Gov. Gavin Newsom (D) said Monday night he was "eager to partner with" Trump to "Make America Film Again" with a $7.5 billion federal film tax credit, the fix favored by Hollywood.
Who said what
Film and TV production in Los Angeles has been declining for years as other countries — and other states, including Georgia and New York — lured away moviemakers with generous tax breaks and cheaper labor. The industry has been "pleading with politicians for years to help stem the exodus," The Wall Street Journal said, but tariffs aren't "what Hollywood had in mind."
It's not clear what would constitute a "foreign" production, how the tariffs would be applied or how Trump would tax digital streaming services. And expanding his "trade war to include services" exposes Hollywood and other service-based industries to "potentially punishing foreign retaliation," The Washington Post said. "Americans routinely sell foreign customers more services than they buy," and Hollywood alone had a "$15.3 billion trade surplus in 2023," earning 70% of box office revenues from overseas.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
White House spokesperson Kush Desai said Monday that the administration was "exploring all options" and "no final decisions on foreign film tariffs have been made."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
5 biting editorial cartoons about 'Alligator Alcatraz'
Cartoons Artists take on dangerous green things, historical precedent, and more
-
A journey into the deep past on beautiful Arran
The Week Recommends New Unesco Global Geopark played a 'key role' in the birth of modern geological science
-
China's London super-embassy
The Explainer The People's Republic wants to build a massive new embassy in central London, and a lot of people aren't happy about it
-
How will Trump's megabill affect you?
Today's Big Question Republicans have passed the 'big, beautiful bill' through Congress
-
Judge blocks Trump's asylum ban at US border
Speed Read The president violated federal law by shutting down the US-Mexico border to asylum seekers, said the ruling
-
How successful would Elon Musk's third party be?
Today's Big Question Musk has vowed to start a third party after falling out with Trump
-
Thai court suspends prime minister over leaked call
Speed Read Prime Minister Paetongtarn Shinawatra has been suspended, pending an ethics investigation
-
Senate passes GOP megabill after Alaska side deal
The pivotal yes vote came from Sen. Lisa Murkowski, whose support was secured following negotiated side deals for her home state Alaska
-
How would the Trump administration denaturalize immigrant citizens?
Today's Big Question Using civil courts lowers the burden of proof
-
'Trucking is a dangerous business'
Instant Opinion Opinion, comment and editorials of the day
-
Trump sues LA over immigration policies
Speed Read He is suing over the city's sanctuary law, claiming it prevents local law enforcement from cooperating with federal immigration authorities