Trump’s fees for foreign films confused Hollywood and threatens the film industry

US President Donald Trump’s announcement of imposing 100% customs tariffs on films produced outside the United States has sparked widespread reactions in cinematic circles, especially in Hollywood, which depends heavily on international production sites to reduce costs. The sudden decision targeted several countries such as Canada, the United Kingdom, Australia, New Zealand, Hungary, Italy, and Asian countries that have been representing for years major rules for filming American films, according to the British newspaper The Guardian.

Mystery in the offering … and the call of “American films again!”

Although Trump’s publication concluded with a blatant sentence: “We want films made in America again!”, The mysterious advertisement formula restored the chaos that accompanied the imposition of its previous fees, which opened the door to speculation and questions in the cinema sector about how to actually apply this decision.

How can a tariff be imposed on “movie”?

Today, the films are no longer “goods” imported through the ports, but rather have become complex production entities, consisting of global financing, international crew, and returns distributed over several markets. In light of this reality, the imposition of fees on a specific movie seems difficult to apply, especially with the development of digital broadcasting that made production and distribution move outside the border quickly.
Observers believe that the motivation behind the decision may be Trump’s dissatisfaction with the recent Chinese policies that have resulted in the imports of Hollywood films within the framework of the trade war between the two countries.

Punishment for the use of external production sources

Trump does not target foreign films themselves, but rather the use of external sources by the Hollywood studios, which use international production sites to save costs or obtain attractive photography backgrounds. This is reflected in the decline in film production within Los Angeles by 40% during the past decade.

Global revenues tempt Hollywood

Although North America is still the largest film market, with box office revenues of $ 8.8 billion in 2024, the global market exceeded 21.1 billion dollars, which prompted production companies to adopt an international approach, starting from photography outside the country, to launching first shows around the world, and choosing representatives attracting a global audience.

Does the viewer pay the price?

Some analysts raised questions about the party that will bear the proposed customs duties: Are they production companies?
Or distributors? Or broadcast platforms?
Since the audience often sees movies in digital subscriptions, the idea of ​​imposing fees on each movie appears to be practically implemented.

A possible alternative to film drawings

Observers believe that Trump may not target the same film, but rather the tax exemptions offered by foreign countries to the Hollywood studios. For example, reports revealed that “Universal Studios” received 89 million pounds from the British government to film her movie “Juerasic World: Rebirth” in Hurtfordshire Province.

Anti -California move

California has announced a new plan of $ 750 million to support the local film industry. It is believed that Trump’s declaration is an implicit response to state governor Javin Newsum, who filed a lawsuit against the president last April due to his use of “emergency economic powers law” to impose customs duties on various industries.

Does Trump target foreign production subsidies?

The most likely scenario, according to analysts, is that Trump is seeking to impose a tariff on government financial support received by production studios abroad. This is a direct blow to production support systems in countries such as Britain, as 86% of spending on films and television came from international sources in 2024, at a value of 4.8 billion pounds (6.37 billion dollars).
If this policy is implemented, its repercussions may not be limited to Hollywood, but will extend to the entire global cinema industry.