The entertainment industry seems to be the latest trade-war target for US President Donald Trump, who is pushing for a 100% tariff on movies not produced domestically. 

According to a post he shared on Truth Social yesterday, the president has already authorized the US Trade Representative and the Commerce Department to begin the process of levies on films produced in “foreign lands” as part of a push to encourage more films to be made in the US.   

“Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within [the country], are being devastated,” Trump wrote. “This is a concerted effort by other nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”

This inflammatory announcement has understandably triggered strong reactions from the global entertainment industry. Along with widespread concern, there’s also much confusion about how these levies would be implemented. A litany of questions have surfaced over whether TV shows will also be subject to the tariffs; if it’s the exhibitors or the studios that will primarily be charged; potential differences in streaming and theatrical films; and how international co-productions (or films that are only partially made in the US) will be affected.

Countries like Australia, Spain, Canada and the UK have been popular and  lucrative production destinations for studios due to their generous tax incentives. While it may certainly take a while for the practical elements to be worked out, Trump’s abruptly announced tariff plans do represent a threat to independent studios and distributors, as well as to the health of the broader international screen sector. 

“For the Australian industry, it reinforces the need for the government to focus immediately and swiftly on building a resilient local industry that can withstand global shocks like this,” said Matthew Deaner, CEO of Screen Producers Australia, in a statement.

Caroline Dinenage, chair of the UK government’s Culture Media and Sport Committee, also commented: “Making it more difficult to make films in the UK is not in the interest of American businesses. Their investment in facilities and talent in the UK, based on US-owned IPs, is showing fantastic returns on both sides of the Atlantic. Ministers must urgently prioritize this as part of the trade negotiations currently underway.”

News of the film tariffs follow closely on the heels of President Trump signing an executive order last week to slash federal funding available to US public broadcasters PBS and NPR.

(Pictured: Last year’s family musical feature Wicked, which was primarily filmed in the UK)