President Blames International Incentives for Hollywood’s Decline
Washington D.C., May 5, 2025 — President Donald Trump has announced a sweeping tariff on non-US movies, stating the move is necessary to protect America’s film industry from what he describes as foreign manipulation and propaganda. The 100% import tax will apply to all films produced outside the United States.
In a post shared on his Truth Social platform, Trump described the situation as an emergency for American cinema, accusing other countries of offering aggressive incentives that lure away U.S. filmmakers.
“The Movie Industry in America is DYING a very fast death,” Trump posted. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”
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New Trade Directive Targets Foreign Film Industry
Trump confirmed he has authorized the Department of Commerce and the United States Trade Representative (USTR) to begin implementing the tariff on non-US movies immediately. He emphasized that the policy is aimed at rejuvenating domestic film production and reversing the migration of projects to international locations.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” he declared.
The USTR supports the decision, citing that U.S. filmmakers are increasingly disadvantaged by non-tariff barriers such as tax breaks offered in countries like Canada, Ireland, and the United Kingdom. Cities such as Toronto and Dublin have become major production hubs, often chosen over traditional U.S. locations like Los Angeles.
Hollywood Struggles as Global Competition Rises
The move comes as the American film industry faces an identity crisis. Movie ticket sales have dropped sharply since the COVID-19 pandemic, and audiences are increasingly turning to streaming platforms rather than attending theaters.
To combat the decline, California Governor Gavin Newsom has proposed expanded tax credits in hopes of attracting film projects back to Hollywood and countering the effects of the growing tariff on non-US movies competition.
Tariff on Non-US Movies Adds to Trump’s Trade War Arsenal
This announcement is the latest in a series of aggressive trade actions by Trump. Since returning to the presidency, he has enacted heavy tariffs across various sectors, including a 145% tariff on Chinese imports. China responded with a 125% tariff on American goods, intensifying what many are calling a full-scale trade war.
The newly announced tariff on non-US movies adds a cultural and media dimension to Trump’s protectionist agenda, raising concerns about its potential to inflame global trade tensions even further.
U.S. Economy Shows Signs of Strain
Recent economic data reveals early signs of fallout from Trump’s tariffs. The U.S. economy shrank by 0.3% in the first quarter of 2025, with consumer spending and import activity seeing marked declines.
Shipping volume from China has also dropped dramatically—by as much as 60%—leading shipping companies to cancel 25% of their planned sailings. The Port of Los Angeles is expecting a 35% drop in container arrivals due to order suspensions and tariff uncertainty.
Experts Raise Alarm Over Economic Instability
Economic analysts have warned that the administration’s unpredictable trade strategies, including the tariff on non-US movies, are contributing to broader market instability.
“All of it,”
said Boston College economist Brian Bethune when asked how much of the economic downturn could be attributed to Trump’s policies.
Despite Trump’s claims of negotiating “privileged” trade deals with countries like Switzerland, South Korea, and Japan, foreign governments have voiced growing frustration.
“There’s not a coherent strategy,”
said Josh Lipsky of the Atlantic Council.
“They don’t understand completely what the White House wants, nor who they should be negotiating with.”
For more updates and analysis on U.S. visit Hours of News.
