US President Donald Trump has announced plans to impose a 100% tariff on foreign-produced films entering the US, claiming Hollywood is “dying a very fast death” due to outsourcing. In a Truth Social post, Trump directed the Commerce Department and US Trade Representative to begin the process, framing foreign film incentives as a “national security threat.” The proposal, which remains vague, has sparked confusion over whether it targets non-US films or American productions shot abroad—such as Deadpool & Wolverine and Gladiator II.
Hollywood has faced challenges post-pandemic, with production spending dropping 20% in Q2 2024 compared to 2022. While box office revenues rebounded 15.8% this year, strikes, wildfires, and competition from streaming have strained the industry. Trump’s tariffs could disrupt co-productions and hit UK studios hard, where films like Barbie and Mission Impossible were shot. UK officials warned the move threatens their status as “Hollywood of Europe,” while unions fear job losses for freelancers.
The plan, reportedly influenced by actor Jon Voight, also includes proposals for federal tax rebates (10–20%) to lure productions back to the US. However, experts warn tariffs may backfire, prompting other countries to tax US films and shrink global profits. California Governor Gavin Newsom dismissed Trump’s authority to enforce such tariffs and proposed a $750M annual state incentive to counter outsourcing.
With Cannes Film Festival approaching, uncertainty looms for international distributors. While Trump later softened his stance—assuring James Bond would be exempt—the debate highlights Hollywood’s struggle to balance globalization with local job preservation.
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