The recent announcement by former President Donald Trump regarding a potential 100% tariff on movies produced outside the United States is causing quite a stir in the global film industry. In a post shared on Truth Social, Trump accused foreign nations of appropriating American filmmaking, and he directed criticism toward California Governor Gavin Newsom for not doing enough to retain productions within Hollywood’s borders. This bold claim marks another chapter in the ongoing debate about American production versus overseas competition.
While the news cycle quickly shifted focus to Trump's peace efforts in Gaza and then the impending U.S. government shutdown, the implications of his tariff threat continue to resonate throughout the entertainment sector. Industry insiders are expressing concerns that the consequences could linger far beyond the fleeting attention to Trump's social media statements.
Lowell Schrieder, a Canadian talent manager for CK Talent, voiced strong apprehension, stating, "Such a tariff would drastically reduce demand for our soundstages, technological advancements, and crew training—leading to widespread layoffs. It could be devastating. Under these pressures, studios would shy away from filming in Canada. This scenario poses a catastrophic scenario for collaborative projects, funding, and development opportunities."
Canada has positioned itself as a viable alternative to Hollywood, boasting a robust infrastructure and cost advantages for film production. Should Trump’s tariff threat come to fruition, Canadian officials fear that these competitive edges could vanish almost instantly. Schrieder notes that even the mere mention of a possible tariff could make studio executives hesitant about where to shoot their next major films.
This isn’t the first time Trump has bandied about the idea of imposing such tariffs; he initially brewed this controversy back in May, just ahead of the prestigious Cannes Film Festival. Nonetheless, no concrete legislation has been put forth to translate this threat into actual policy. Meanwhile, discussions have swung in the direction of new tax incentives, such as Newsom’s plan to double California’s annual tax credit for film production to an impressive $750 million. This positive movement shows a shift away from penalizing projects that choose to shoot internationally.
Lawmakers like Rep. Laura Friedman and Sen. Adam Schiff seized Trump’s remarks as a renewed opportunity to advocate for a federal tax incentive to support the industry. However, the vague nature of Trump’s tariff proposal leaves many questions unanswered. Would the 100% tariff apply indiscriminately to all films produced outside U.S. territory, regardless of how they were financed? What happens in cases where a film is partially shot in Los Angeles but moves post-production to London or employs visual effects teams in Vancouver? Given that a typical Hollywood blockbuster is often pieced together from multiple international locations, determining what constitutes a U.S. production under this tariff remains a significant challenge.
Despite this ambiguity, governments worldwide are taking Trump’s threat seriously. Australia's arts minister, Tony Burke, has announced strong support for the Australian film industry, making it clear that the Australian government will protect local talents and studios. The Ontario government agency, Ontario Creates, has also cautiously acknowledged the situation, expressing that while they can’t fully grasp the potential ramifications of the proposed tariffs until concrete policies are laid out, they will endeavor to ensure that Ontario maintains its esteemed status as a top production jurisdiction.
International producers and film studios are rightfully concerned that such tariff threats could be leveraged by the U.S. as a bargaining chip against countries striving to safeguard their own creative sectors. For instance, Canada’s Online Streaming Act mandates foreign streaming platforms making significant profits in Canada to channel a portion of those revenues into supporting local and Indigenous content. This law has been a point of contention for U.S. legislators for some time. Similarly, Germany is currently embroiled in discussions about its own legislative proposal—dubbed 'Lex Netflix'—which would require global streaming services to reinvest a specific percentage of their earnings into local production, mirroring laws in nations such as France, Italy, and other European Union member states.
Regardless of what unfolds, Trump’s tariff threats have magnified the precarious nature of the global production landscape and how susceptible an industry built upon international collaboration is to shocks. Nicholas Simon, CEO of Indochina Productions in Bangkok, has shared his insights, noting that Trump’s unpredictability makes these claims particularly disconcerting. He recalled that past threats dissipated relatively quickly, with normalcy returning in about a week. "However," Simon warns, "if Trump truly takes aim at the production industry this time, it could instigate genuine concern and have real, lasting effects. If it turns out to be nothing more than his usual empty rhetoric, it will likely fade away quickly."
So, what do you think? Is this a genuine threat that the industry should be alarmed about, or just another instance of political bravado? Share your thoughts in the comments below!
