Azernews.Az

By Alimat Aliyeva

On Sunday, former U.S. President Donald Trump announced plans to impose a 100% tariff on all films produced outside the United States, arguing that foreign governments are undermining the American film industry by luring filmmakers abroad with generous incentives, Azernews reports.

Speaking on his social media platform Truth Social, Trump described the situation as a “coordinated effort” by other countries that poses a threat to national security. “This isn’t just about economics—it’s also about propaganda,” he said, without specifying which films or countries he had in mind.

Trump said he had directed federal agencies, including the Department of Commerce, to immediately begin preparations for implementing the tariff. “We want movies made in America again!” he declared, according to Reuters.

While the specifics of the policy remain unclear—such as whether it would apply to films released via streaming platforms or only those shown in theaters, or whether the duty would be based on production costs or gross revenue—the announcement has already triggered international concern.

In response, officials from Australia and New Zealand expressed strong opposition, pledging to defend their local film industries. Both countries have become key players in global film production: New Zealand famously served as the backdrop for "The Lord of the Rings" trilogy, while Australia has hosted several high-profile Marvel films. These productions have not only boosted their economies but also turned them into global tourism destinations.

Trump’s move is part of a broader effort to revive domestic filmmaking. In January, he appointed Hollywood veterans Jon Voight, Sylvester Stallone, and Mel Gibson as "special envoys" tasked with making American cinema “bigger, better, and stronger than ever before.”

Over the past two decades, Hollywood has seen a steady exodus of film and television production. Studios increasingly favor international locations where tax credits, lower labor costs, and government-backed subsidies make projects more affordable. According to Ampere Analysis, global content spending is expected to reach $248 billion by 2025, and foreign governments are eager to claim a larger piece of that pie.

Major studios like Disney, Netflix, and Universal Pictures often choose to film in Canada, the UK, and other countries with competitive incentives. A 2023 report by ProdPro found that nearly 50% of U.S. film and TV production budgets over $40 million were spent overseas. Meanwhile, FilmLA, a nonprofit that tracks filming activity in Los Angeles, reported that local production has fallen by nearly 40% over the past decade.

Critics argue that the proposed tariff may lead to retaliatory trade measures, strain international co-productions, and potentially increase costs for American distributors and audiences. Others question whether the plan is enforceable in the age of digital streaming, where content flows freely across borders.

Still, Trump’s announcement has thrust the long-running debate about the globalization of Hollywood back into the spotlight—raising difficult questions about cultural influence, economic competition, and the future of American storytelling on the world stage.