Hollywood is on edge as President Donald Trump’s proposed tariffs on foreign film productions threaten to upend the world’s leading entertainment export. With the U.S. running a massive services trade surplus, analysts warn that such measures could backfire, inviting counterattacks from key markets.
In a Truth Social post, Trump said he instructed the Commerce Department and the U.S. trade representative to "immediately begin the process of instituting" levies on overseas movies, adding "WE WANT MOVIES MADE IN AMERICA, AGAIN!"
Markets reacted swiftly: shares of Netflix Inc. and Warner Bros. Discovery fell by about 3% and Paramount Global and Walt Disney Co. slid roughly 2% as investors weighed the fallout.
Experts fear retaliation from major film exporters. Australia and New Zealand have already vowed to defend their industries, while the European Union, Canada, and Japan could impose local quotas or add fees on American movies.
"The whole movie industry is in crisis already. If we add extra production costs, these tariffs could have a disastrous effect," says Scott Roxborough, chief of the European Bureau at the Hollywood Reporter. He notes that U.S. films capture 70%–80% of box office revenue in many markets.
William Reinsch, a former Commerce Department official, warns, "The retaliation will kill our industry. We have a lot more to lose than to gain." With Hollywood’s global stronghold at risk, the entertainment world is bracing for a showdown that could reshape cross-border film trade.
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Hollywood on edge: Filmmakers call Trump's tariff plan 'disastrous'
cgtn.com
