By Joke Kujenya
AMERICAN FILM and media stocks tumbled on Monday after President Donald Trump declared a sweeping 100 percent tariff on all movies produced outside the United States (US).
This has been dubbed an unprecedented move aimed at reshaping Hollywood’s global dependencies.
Trump claimed the American film industry is under siege, citing foreign production incentives as a catalyst for an “alarming decline” in domestic filmmaking.
In a terse statement issued early Monday, the president characterised the issue as a national security threat and warned of “messaging and propaganda” embedded in international productions.
“The movie industry in America is dying a very fast death,” Trump said.
“Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other nations…
“Therefore, I am authorising the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% tariff on any and all movies coming into our Country that are produced in Foreign Lands.”
The announcement sent shockwaves through Wall Street and the entertainment sector, with Netflix stock sliding 4.9% in premarket trading and broader media shares, including Walt Disney Co, Warner Bros Discovery, and Comcast, dropping by as much as 2.7%.
Analysts warned the decision could upend global distribution models, raising costs for studios that have long relied on international production networks.
Trump’s order left many unanswered questions, including whether streaming content would fall under the new policy and how the tariffs would be calculated—by production cost, box office revenue, or another metric.
Streaming giants, particularly Netflix, stand to be most vulnerable due to their heavy investment in overseas shoots and production houses.
The company’s international model, developed over the last decade, now faces potential disruption.
Despite Trump’s alarmist tone, recent data suggests the domestic film industry is regaining momentum.
The US box office hit $8.7 billion last year—only slightly down from $9 billion in 2023—after weathering pandemic shutdowns and widespread labour strikes. Industry projections anticipate stronger growth in 2025.
Still, the centre of production has drifted overseas. A recent survey by ProdPro found that the top five preferred filming locations for studio executives in 2025–2026 were all outside the United States.
Notably, none of this year’s Oscar best picture nominees were filmed in Los Angeles, once the heart of global cinema.
Studios increasingly favour locations such as the United Kingdom, where favourable tax regimes and lower production costs offer a competitive edge.
Visual effects and post-production are often outsourced to Canada and Southeast Asia, underscoring the international architecture of modern filmmaking.
Critics within the industry argue the tariff fails to recognise the interconnected nature of film production in the 21st century.
Several voices have warned that the policy could jeopardise longstanding international collaborations and invite retaliatory measures from affected nations, potentially escalating trade tensions into the cultural domain.
A forced reshoring of production could also inflate budgets in an already cash-strapped industry, struggling to adapt to post-COVID economic realities and evolving audience demands.
The tariff adds to Trump’s legacy of aggressive trade interventions.
His administration has already imposed sweeping tariffs, including a 10 percent baseline import tax and targeted levies on strategic industries and third-party trade partners.
The latest move, however, marks the most direct assault yet on the creative sector.
