'Make movies in America, or face a 100% tax; Trump targets foreign films.

US President Donald Trump has announced plans to impose a 100% tariff on all movies produced outside the United States, claiming that the American film industry is facing rapid decline due to lucrative incentives offered by other nations. Posting on his Truth Social platform, Trump framed the move as a matter of national security, accusing foreign governments of using cinema as a tool for "messaging and propaganda."

According to Trump, he has directed the US Commerce Department and the US Trade Representative to begin work on enforcing the tariff immediately. "WE WANT MOVIES MADE IN AMERICA, AGAIN!" Trump declared, without offering specifics on how the policy would be applied — including whether it would impact American companies filming abroad or only foreign production houses.

US Commerce Secretary Howard Lutnick confirmed on X (formerly Twitter) that his office is preparing to act, though like Trump, he did not provide any detailed framework for the proposed tariff.

The announcement comes at a time when Los Angeles — long considered the heart of the US film industry — has seen production plummet by nearly 40% over the past decade, according to data from FilmLA. Competing nations such as Australia and New Zealand have aggressively courted international productions with generous tax rebates and financial incentives, aiming to secure a larger slice of the estimated $248 billion expected to be spent globally on content creation in 2025.

Reacting to Trump’s proposal, Australia’s Home Affairs Minister Tony Burke pledged to protect his country’s screen industry. "We will stand unequivocally for the rights of the Australian screen sector," Burke said. New Zealand's Prime Minister Christopher Luxon also responded, saying his government would closely monitor developments while remaining a staunch advocate for the local film industry.

Industry experts have voiced concern over the broader fallout from such a tariff. William Reinsch, a former senior official at the US Commerce Department and now a fellow at the Center for Strategic and International Studies, warned that any retaliation from foreign markets could severely harm Hollywood. “We have far more at risk than we stand to gain,” Reinsch noted, pointing out the difficulty of justifying film tariffs on national security grounds.

The announcement follows earlier trade confrontations initiated by Trump, including a trade war with China that disrupted global markets. Already, Beijing has slashed its quota of American films allowed into Chinese cinemas — a significant blow given that China is the world’s second-largest movie market.