Trump orders 100% tariff on foreign-made films
US President Donald Trump has confirmed that he is ordering a 100% tariff on all foreign-made films, The National via Reuters reported on May 5th.
Trump called these films, a “national security threat.” He stated on Truth Social: “We want movies made in America, again.” The move comes amid the recent utilisation of tariffs by the administration, affecting US relations across the world. However, rather than enacting the tariff himself, Trump authorised the US Department of Commerce and the US Trade Representative to implement the measure.
Over the past few decades, Hollywood has increasingly shifted production overseas, especially to Canada and the MENA region, where governments offer generous tax incentives. In particular, the UAE, Jordan, Saudi Arabia, Qatar, Morocco, and Tunisia have attracted major film projects.
Abu Dhabi alone has hosted over 180 major productions, including F1, Now You See Me: Now You Don’t, Dune, and several entries from the Mission: Impossible, Star Wars, and Fast and Furious franchises.
Abu Dhabi’s rebate programme, launched in 2013, recently increased its cash-back offer from a base of 30% to at least 35%. But even some productions have qualified for 50%. Elsewhere, Morocco provides a 30% rebate, Jordan 25%, and Saudi Arabia 40%.
The BBC reported on May 5th that Hollywood faced major setbacks from the pandemic, a 20% production spend drop, 2023 strikes and the recent wildfires. Audiences continue shifting to streaming platforms. Still, recovery signs have emerged, with 2025 box office revenues rising by 15.8% from 2024, as of yet. The US remains a key global film production hub.
Trump doubled down in a C-SPAN interview, saying, “Hollywood is being destroyed… other nations have stolen our movie industry.” He also said: “This is a concerted effort by other nations and, therefore, a national security threat.” Meanwhile, California Governor Gavin Newsom’s office responded. It said: “Looks like it’s distraction day again in Washington.”
The growing globalisation of the film industry complicates the enforcement of the tariffs. Now, many productions involve multiple countries at various stages such as filming, editing, and CGI rendering. It remains unclear whether completed but unreleased films, such as F1, will face the new levy.
The National via Reuters, BBC
