On Sunday, Donald Trump announced via his Truth Social platform a proposal for a 100% tariff on all movies "produced in Foreign Lands." The former President expressed concerns about the declining state of the U.S. film industry, asserting that it was experiencing a "very fast death" due to incentives offered by other countries aimed at attracting American filmmakers.

In his statement, Trump indicated that he had empowered the U.S. Department of Commerce and the U.S. Trade Representative to begin implementing such tariffs without delay.

He described the efforts by other nations as a "concerted effort" that he characterized as a national security threat, calling the influx of foreign films a form of "messaging and propaganda."

Commerce Secretary Howard Lutnick responded on social media platform X, stating, "We’re on it," although neither he nor Trump provided explicit details regarding the logistics of the tariff's implementation.

The scope of the tariff raises questions about whether it would affect production companies—whether foreign-based or American firms producing movies overseas.

Research from FilmLA, a nonprofit organization that measures production activity in Los Angeles, has indicated that film and television production in the area has declined by nearly 40% over the past decade.

Concurrently, countries around the world are enhancing their offerings of tax credits and cash rebates in an effort to attract production work, hoping to capture a larger share of the $248 billion projected by Ampere Analysis to be spent globally on content production by 2025.

Politicians in Australia and New Zealand reacted to Trump's announcement, both expressing support for their domestic film industries.

Tony Burke, Australia's Home Affairs Minister, stated that he had communicated with the head of Screen Australia regarding the proposed tariffs and affirmed the country's strong support for their film industry.

New Zealand Prime Minister Christopher Luxon highlighted the need for further details about the tariffs while asserting his government's commitment to championing their local film sector.

This announcement from Trump follows previous trade skirmishes, including a trade war with China that introduced global tariffs, which have leading to fluctuations in markets and intensifying fears of a potential U.S. recession.

The film industry is already under pressure, as evidenced by China's response in April, where it reduced the quota of American films permitted into its market—a significant move given that China ranks as the world’s second-largest film market after the United States.

In recent years, domestic Chinese films have increasingly eclipsed Hollywood imports in popularity.

William Reinsch, a former senior official at the U.S. Department of Commerce and now a senior fellow with the Center for Strategic and International Studies, warned that retaliatory actions against Trump's proposed tariffs could severely damage the U.S. film industry.

He noted, "The retaliation will kill our industry.

We have a lot more to lose than to gain," emphasizing the challenges of justifying the tariffs on national security grounds.