Donald Trump has announced that the US will impose a 100% tax on movies made outside the country. He says Hollywood is being destroyed because many filmmakers are choosing to shoot in other countries like the UK and Canada.

Trump posted on his Truth Social platform, saying, “It is, in addition to everything else, messaging and propaganda! WE WANT MOVIES MADE IN AMERICA, AGAIN!” He believes foreign countries are luring filmmakers away with incentives, which he calls a “national security threat.”

The US Commerce Secretary, Howard Lutnick, responded by saying, “We’re on it.” However, many details are still unclear. For example, it is not known if the tax will apply to American companies that make movies abroad or if it will affect streaming platforms like Netflix.

Why Are Filmmakers Leaving Hollywood?

Over the years, many big movies have been filmed outside the US to save money. Recent examples include Deadpool & Wolverine, Wicked, and Gladiator II.

Timothy Richards, who runs a big cinema chain in Europe called Vue, asked how Trump would decide what counts as a “US film.” He told BBC Radio 4: “Is it where the money comes from? The script, the director, the talent, where it was shot?”

Richards also explained that filming in places like Los Angeles has become very expensive. Many filmmakers now prefer the UK because it offers tax benefits and has highly skilled crews.

How Will This Affect the Film Industry?

The UK media union Bectu warned that Trump’s plan could be a “knock-out blow” to the international film industry, especially for freelancers still recovering from the pandemic.

Philippa Childs, the union’s leader, said: “The government must move swiftly to defend this vital sector, and support the freelancers who power it, as a matter of essential national economic interest.”

The UK government said it is “absolutely committed” to helping the film industry grow and will release a new plan soon. Meanwhile, the British Film Institute (BFI) said it is working with the US to understand the proposal better.

Could Other Countries Fight Back?

If the US taxes foreign-made films, other countries might do the same to American movies. Eric Deggans, a film critic for NPR Radio, said this could backfire. “It may create a situation where the tariffs in America are causing more harm than good,” he told the BBC.

Australia and New Zealand have already reacted strongly. Australia’s home affairs minister, Tony Burke, said: “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”

New Zealand’s Prime Minister, Christopher Luxon, also said his government supports its film industry and will wait for more details.

Why Is Trump Using Tariffs?

Tariffs are taxes on imported goods. Trump believes they will help US businesses by making foreign products more expensive. Since becoming president again, he has placed tariffs on many countries.

Before taking office, Trump appointed actors Jon Voight, Mel Gibson, and Sylvester Stallone as special envoys to bring Hollywood back to the US. He wrote: “They will serve as Special Envoys to me for the purpose of bringing Hollywood, which has lost much business over the last four years to Foreign Countries, BACK – BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”

How Has China Reacted?

Even before this new plan, China had already reduced the number of American movies allowed in its theaters. The China Film Administration said: “The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films.”

What’s Next?

Right now, the film industry is waiting for more details. Many people are worried about how this will affect jobs and movie budgets. Some fear it could lead to higher ticket prices or fewer films being made.

The Motion Picture Association, which represents big US studios, has not yet commented. Meanwhile, countries like the UK, Canada, and Australia are preparing to defend their film industries if needed.

Trump’s plan is part of his bigger trade war, but only time will tell if it helps Hollywood or causes more problems.