Trump Reiterates Plan to Levy 100% Tariff on Foreign Film Productions

President Trump reiterated on Monday that he “will be imposing” a 100% tariff on foreign-made movies, escalating a plan he first referenced in May when he said he was “authorizing” such a tariff.

Even after the updated announcement, it’s still unclear how the policy will apply to upcoming studio titles made overseas, such as “Tron: Ares” (filmed in Vancouver), “Wicked: For Good” (shot in London and Cairo), and “Avatar: Fire and Ash” (partly filmed in New Zealand).

Three major obstacles are evident:

1) Defining what would be taxed.

Unlike countries that use quotas limiting foreign titles or mandating domestic screening minimums, a tariff requires a taxable transaction. U.S. studios do not “import” completed films at a declared price; modern productions are created and edited across borders. One earlier draft concept, described as the “Jon Voight plan,” proposed a 120% tariff on the value of foreign production subsidies. Under that approach, a production receiving $50 million in Canadian subsidies would face a $60 million tariff, a level that would functionally deter such activity. A simpler alternative could be a ticket tax or a levy on domestic box-office revenue for films produced overseas, but that is not what Trump has proposed.

2) Identifying viable legal authority.

Many of Trump’s second-term tariffs have cited the International Emergency Economic Powers Act (IEEPA) of 1977, but the law’s Berman amendments exempt “informational materials,” including films. In August 2020, a federal district court enjoined an IEEPA-based attempt to ban TikTok, citing that exception; a similar injunction would likely be sought against any film tariff premised on IEEPA. Trump could instead attempt Section 301 (unfair trade practices) or Section 232 (national security), but either route would invite litigation, potentially including First Amendment claims.

3) Limited political support.

Hollywood unions, while concerned about the outflow of production, favor a federal subsidy to counter incentives offered by countries such as the U.K. and Canada; Democratic lawmakers have explored that option without gaining significant traction. Theater operators, still recovering from the pandemic, oppose ticket-price increases that a tariff-linked levy could cause, and audiences are not seeking higher ticket costs. Recent political pushback in the media arena illustrates the constraint: last week, the Federal Communications Commission backed down after threats against ABC affiliates led to Jimmy Kimmel being taken off the air for a few days; opposition included Republican senators. Similar resistance could emerge before any tariff is implemented.