US President Donald Trump announced on Monday that a 100% tariff will be applied to all films produced abroad and brought to the US. This decision could fundamentally shake Hollywood’s global business model.
Trump, in a post on Truth Social, stated, “Our film industry has been taken away from us by other countries, just like taking candy away from a baby.” However, it remains unclear under what legal authority this tax will be implemented.
Warner Bros, Paramount, Netflix studios have not yet made a statement, while experts say this step will increase costs and this will be reflected in consumer prices.
It is known that Hollywood has produced billions of dollars worth of productions thanks to tax incentives in countries such as Canada, the UK, and Australia. Industry representatives warn that such a broad tariff will negatively impact not only studios but also thousands of American workers employed in overseas productions. The US film industry reported a trade surplus of $15.3 billion in 2023. The new tax decision could seriously alter this balance.
