Raissa Santos

The president of the United States intends to impose a 100 per cent tariff on movies produced in foreign countries. On Sunday, he used his platform Truth Social to say the movie industry in America is “dying a very fast death.” Trump wrote that the issue is considered a national threat and he is authorizing the Department of Commerce and the United States Trade Representative to start working on implementing the levy. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump added.

The action took place after a proposal from Jon Voight, special advisor Steven Paul and media executive Scott Karol was sent to Trump in Mar-a-Lago. The plan outlines ways to boost production back in Hollywood and the United States.

As cited in Trump’s post, foreign countries like Canada, the United Kingdom, Australia and others offer several incentives for movies to be produced in their countries. Hollywood, once the production hub, has seen a decline in production in recent years — 40 per cent less after the strike with writers and actors was resolved.

The reaction from the foreign industry

Representatives from entertainment industries across the globe have voiced concerns if the tariffs take place. Deborah Yedlin, Calgary Chamber of Commerce president and CEO, said, “It’s actually quite distressing. We’ve worked hard to attract film and television to Calgary.” A U.K. producer said, “It’s an absurd announcement with no meaning nor understanding of storytelling or creative impulses.” The discontent with the tariffs has been met with shock and unease in the entertainment industry. A London producer said, “If this goes the distance, it will decimate the industry.”

How will the tariffs be implemented?

It is still unclear how the levy will be put into effect. Tariffs are usually imposed at the point of entry to a country, where movies are distributed digitally. Movies are often shot and produced in multiple countries, involving several sectors from pre-production to the finalized product.

One of the many questions is how the tariff will be charged, and at what point in the process. Charlie Keil, professor at the University of Toronto’s Cinema Studies Institute, says the process of identifying the exact portion of what has been produced in foreign countries is complicated. “There’s a whole spectrum here, between films that are primarily made in the U.S. but might have some post-production work done in another country.”

Movies have different costs but arrive with an equal price at the movie theatres. If the tariffs affect ticket prices, people might not be willing to pay more for entertainment. Content available on streaming services would also be difficult to price, since users pay a flat monthly amount instead of paying for each movie and TV show separately.