👉 “The Movie Industry in America is DYING a very fast death,” Trump wrote, accusing other nations of luring away U.S. filmmakers with generous incentives. “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”

While the announcement made headlines, the details remain murky — and the potential impact on audiences, studios, and international partners is raising eyebrows across the industry.

The global film market is anything but simple. Today, most major movies are international efforts — with scenes shot in multiple countries and talent drawn from around the world. Take Mission: Impossible — The Final Reckoning, which filmed across Europe, the Middle East, and North America.

For years, tax incentives and rebates have shaped where studios shoot. Places like Canada, the United Kingdom, and New Zealand have become go-to destinations, thanks to generous government programs that slash production costs. In New Zealand alone, the film industry generated over NZ$1.3 billion (US$777 million) in 2023 — thanks largely to U.S. productions drawn in by NZ$200 million in subsidies.

New Zealand Prime Minister Christopher Luxon was diplomatic, saying he’s waiting for details on Trump’s plan but promising to keep pitching his country as the world’s premier film destination. “We’ve got an absolutely world-class industry,” Luxon said. “This is the best place to make movies, period.”

Trump’s move comes despite the fact that U.S. films continue to dominate the global box office. According to the Motion Picture Association (MPA), American productions accounted for US$22.6 billion in exports and a US$15.3 billion trade surplus in 2023.

Yet China has become an emerging powerhouse, with domestic blockbusters like Ne Zha 2 raking in more than $2 billion — almost all of it within China itself. Meanwhile, American hits in China and other overseas markets still pull in billions in global ticket sales.

Despite this dominance, Trump has long worried about Hollywood’s drift overseas. Even before his first term, he named actors Mel Gibson, Jon Voight, and Sylvester Stallone as “special ambassadors” to help “bring Hollywood BACK — BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”

The U.S. film sector has faced rough years. Between the COVID-19 pandemic, the Hollywood strikes of 2023, and even the wildfires sweeping through California, American productions have taken a hit.

📉 According to ProdPro, overall production in the U.S. fell 26% in 2023 compared to 2021. Shockingly, in a survey of entertainment executives, no U.S. city made the top five most desirable filming locations — Toronto, the U.K., Vancouver, Central Europe, and Australia took those honors, while California, Georgia, New Jersey, and New York trailed behind.

California, once the epicenter of global filmmaking, has been hit especially hard. Los Angeles saw a 5.6% drop in production last year — its second-worst year since the pandemic peak in 2020. In response, Governor Gavin Newsom has proposed expanding California’s film and TV tax credit program to US$750 million per year, up from US$330 million.

Trump’s latest threat fits into his larger economic playbook. He’s already slapped a 145% tariff on Chinese goods and announced 10% baseline tariffs on imports from other nations, with plans to extend those duties to pharmaceuticals, autos, and steel. Now, he’s turning his sights on the silver screen.

“Other nations have been stealing the movie-making capabilities from the United States,” Trump told reporters after returning to the White House from a weekend in Florida. “If they’re not willing to make a movie inside the United States, we should have a tariff on movies that come in.”

As with many of Trump’s tariff threats, implementation remains unclear. It’s common for even modest films to have international components, making it nearly impossible to cleanly apply a tariff based on where a movie is shot.

And critics warn the move could backfire, potentially raising costs for U.S. distributors, limiting audience choice, and sparking retaliatory measures from other nations.

The Motion Picture Association has yet to weigh in, but one thing is clear: the debate over where and how movies get made is about to get much louder — and much more political. 🎬🍿