On May 5, 2025, U.S. President Donald Trump announced the imposition of a 100% tariff on all films produced outside the country. This declaration sparked immediate concern within the entertainment industry and triggered a drop in media company stock prices, reports the Baltimore Chronicle with reference to Reuters.
Trump claimed that America’s film industry is facing a “rapid death,” blaming foreign tax incentives designed to attract film production. He described international competition as a threat to national security and instructed Commerce Secretary Howard Lutnick to develop a tariff implementation plan. However, the administration has not yet provided clear details on how the new tariff would be applied—particularly in regard to streaming platforms and international co-productions.
Following the announcement, financial markets reacted swiftly: Netflix shares dropped by 2.2%, while Amazon fell 1.9%. Investors expressed unease over the potential costs and the uncertainty surrounding enforcement of the policy. Analysts warned that countries like China could retaliate with their own tariffs, further complicating the situation for U.S.-based media companies.
Film industry representatives both in the U.S. and abroad voiced concerns. The British media union Bectu warned of possible job losses and threats to local production industries. Governments in Australia, New Zealand, and the United Kingdom declared their intention to defend their film sectors. Critics argue that the proposed tariffs might decrease overall film production volume instead of revitalizing it domestically.
This initiative is part of a broader protectionist trade agenda championed by Trump’s administration. He has previously appointed prominent Hollywood figures like Jon Voight and Mel Gibson to help rejuvenate the American film industry. Still, many observers believe such measures could backfire, especially in the wake of recent labor strikes and shifting viewer habits.
Earlier we wrote that U.S. economy shrinks 0.3% amid Trump tariff surge.