US President Donald Trump on Sunday announced plans to impose a 100% tariff on all movies produced outside the US in a bid to revive the domestic film industry.

Taking to his Truth Social platform, Trump alleged that there was a co-ordinated international effort to undermine Hollywood.

The president said that the Department of Commerce and the US Trade Representative (USTR) have been directed to start the process of implementing the tariff. The matter was important for both economic and national security, he said.

“The Movie Industry in America is DYING a very fast death,” Trump wrote. “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 USA, 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!”

“WE WANT MOVIES MADE IN AMERICA, AGAIN!” he added.

The move expands beyond traditional goods on which Trump had imposed tariffs and targets services—specifically film production. Once implemented, this would be the first time U.S. duties are levied on creative services instead of physical products.

The latest tariffs also come amid ongoing global trade tensions, particularly with China. Last month, China moved to reduce the number of Hollywood films allowed in its market, following new tariffs imposed by the Trump administration on Chinese goods.

The Chinese government responded with a 125% tariff on US exports, escalating a trade conflict disrupting supply chains and contributing to economic contraction.

Recent data shows the US economy shrank by 0.3% in the first quarter of 2025. Imports and consumer spending declined, and container bookings from China dropped by 60%. The Port of Los Angeles expects a 35% reduction in ship arrivals given the uncertainty over tariffs.

Hollywood studios, which has already been suffering following the Covid-19 pandemic, could face additional strain if the proposed tariff takes effect. Production houses such as Disney, Warner Bros, and Paramount have increasingly relied on foreign locations such as Toronto and Dublin to take advantage of lower production costs and tax incentives.

Major movie franchise like ‘Mission: Impossible – The Final Reckoning’, which is slated to release later this month, are generally shot across several international locations. This raises questions about the tariff enforcement and whether it could have an impact on US-based projects with overseas segments.

American states have also tried to lure the these production houses with incentives of their own. California governor Gavin Newsom proposed last year to increase the state’s Film & Television Tax Credit program to $750 million annually, up from $330 million. Other states, including Georgia, New Mexico, Texas, and Illinois, also offer competitive tax breaks and grants to attract production.

The USTR has noted that non-tariff trade barriers—such as local regulations and foreign tax incentives—have put US filmmakers at a disadvantage. In response, the administration maintained the new tariff will level the playing field and bring jobs back to American studios.

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

Netflix’s India production generates over $2 bn

Trump’s announcement also comes after Netlfix co-chief executive officer (CEO) Ted Sarandos said at the WAVES 2025 event in Mumbai that the company’s local production efforts in India have generated over $2 billion between 2021 and 2024.

This has also created about 20,000 jobs for cast and crew members in India, Sarandos said.

“India is approaching a major turning point for storytellers—much like the breakthrough moment Squid Game represented for Korea,” Sarandos noted. The Korean drama remains Netflix’s most-watched series globally.

He noted that India is nearing a similar global breakout in storytelling, supported by streaming platforms like Netflix that offer worldwide reach. According to Sarandos, the groundwork for this transformation is already underway.

The streaming platform has produced around 150 original titles spanning 90 cities across India since the debut of Sacred Games nearly seven years ago.

Sarandos also noted that India’s surging demand for digital content and its position as the world’s second-largest internet market has played a growing role in Netflix’s expansion strategy,