The Donald Trump administration sent shockwaves through the film industry on Sunday when the president said over Truth Social that he had authorized the U.S. Trade Representative and the Commerce Department to start the process of imposing 100% tariffs on all movies made outside of the country. However, foreign productions aren’t getting hit with a higher cost just yet. A White House spokesperson has now walked back those comments, saying that “no final decisions” have been made regarding the tariffs, yet all options are on the table at this time”. Spokesman Kush Desai added that the end goal was to “deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
There are still a ton of questions about what other possible actions are on the table, the logistics and legality of the president’s initial plan, and whether television would be included, but whatever comes next would cause immediate upheaval in Hollywood. Trump‘s goal with the tariffs was to address what he described as “a National Security threat” posed by productions moving from the U.S. to locations like the U.K. and Australia to take advantage of financial incentives that bring budgets down overall. That would include films like Mission: Impossible — The Final Reckoning, which hits theaters later this month, as well as the upcoming Avengers: Doomsday, which is currently shooting in London. While there have been arguments that the shifts overseas have contributed to a decline in jobs in California and that a wider federal incentive for shooting in the U.S. should be considered, the tariff axe would swing much wider and hit films that choose to shoot overseas to match their specific aesthetic. There’s also confusion over how this would affect projects filmed partially stateside and partly elsewhere.
Though the main target appeared to be blockbusters and indies filmed outside the U.S. but still hailing from U.S. companies, this would also presumably deal a massive blow to entirely foreign films. Whether it’s an Indian blockbuster like RRR or an anime film like Demon Slayer: Kimetsu No Yaiba — The Movie: Mugen Train, movies made entirely outside the country have become hugely financially and critically successful stateside. How exactly they would be affected is yet another question of many that has Hollywood and beyond scratching their heads. One U.K. producer told Variety, “This makes no sense,” with another executive highlighting films with distinct locales when asking CNN, “Has anyone told him what this will do to James Bond, Harry Potter, Dune? Where are we supposed to shoot Emily in Paris?”
The final decision for Trump‘s “MHGA” plan may not ultimately be tariffs, but the impact of such considerations is already being felt. Netflix and other entertainment companies saw their shares fall on Monday amid the uncertainty. Studios may soon have to answer for the president’s actions, too, as Cannes is just around the corner. With highlights like Wes Anderson‘s The Phoenician Scheme and Ari Aster‘s Eddington, the festival is also where distribution deals are made and studio backing is given out to promising projects. U.S. executives may be faced with more questions and unease when it comes to doing business this year, with the possibility of tariffs looming over everyone’s heads.
Whether any tariffs or other plans are necessary is arguable. The 2025 box office remains down thus far compared to pre-pandemic levels, and U.S. productions from 2024 were down 20% overall from 2022, but the country is still a powerhouse in film despite facing recent strikes and, earlier this year, catastrophic wildfires in California. Domestically, revenues are up 15.8% compared to last year, with the big hits Sinners and A Minecraft Movie doing the heavy lifting alongside a pair of Marvel films in Captain America: Brave New World, and now Thunderbolts*, among other things.
It doesn’t appear to be “dying a very fast death” like Trump says, even if there is work to be done.
The Motion Picture Association has yet to comment on Trump’s plans. S
via Collider