When President Donald Trump launched a truth-society post over the weekend, announcing his willingness to impose 100% tariffs on all foreign-made films, some Hollywood executives and members of the media opened their eyes while others panicked. Both reactions are appropriate. For an industry that is still struggling with desperate industries, then, the subsequent life saver, Wall Street’s reversal on the streaming model, the double Hollywood labor strike and the Los Angeles wildfire, it’s even worse.
The drama and film industry has been particularly sensational. Box office revenue remains stubbornly below the former ovarian level, with global figures falling from a record $43.3 billion in 2019 to $30 billion last year.
According to these figures, despite the rebound, the 2025 forecast hovers in the $9 billion, but is far from the reliable $11 billion floor, the industry enjoyed $11 billion throughout the 2010s. Large studios are being released collectively 10 to 15 wide versions Every year, more than what was done before the pandemic.
All considered is that the tariffs proposed by Trump are not a solution to the impossible equation Hail Mary.
The Myth of American Movies
The concept of a purely “Made in America” film is as vague as the vision of college students after the fraternity. Research by film industry analyst Stephen shows that the average blockbuster film was shot in 1.6 countries, and in 2019, Hollywood studio producers performed at least a quarter of the UK in the UK and nearly 20% of them were shot in Canada.
Modern filmmaking is necessary to spread across the borders – London’s visual influence, Toronto’s sound mix, financing from multiple international partners and more. Tariffs on this complex global ecosystem could undermine the already volatile production economics.
“I’m not a lawyer, but there seems to be a gap in how tariffs and services are defined in the law,” said industry analyst Guy. The potential impact of the trade war on Hollywoodtell the observer. “My rule of thumb when analyzing current government is: wait until something is done, not just say it.”
International rebound brewing
A greater danger may be abroad. Even ahead of Trump’s post, China announced plans to further restrict American films – which could inspire other countries to follow other countries’ films if tariff tensions escalate.
For an industry that relies heavily on overseas audiences, this can cause disaster. forward Thunder and lightningAccording to box office Mojo, the Marvel Cinematic Universe has generated 56.2% of its $31 billion global ticket sales. Other franchises rely more on overseas: fast and Furious (74%), The World of Wizards (70%), Jurassic Park (62%), Despicable me (62%), DC (61%) and Shrek (60%) Most of all revenue relies on international ticket sales. Any reduction, restriction or slowdown in international drama distribution will have a destructive ripple effect on the already-existing film industry.
Foreign governments have several retaliatory options: increased taxes on U.S. content, requiring more severe local language production in exchange for market access. Europe could impose new levies on U.S. film and streaming services, while other countries could set higher barriers to filming approval.
Alternative Method
Not everyone sees tariffs as the answer. According to Bloomberg, actor Jon Voight and his manager Steven Paul reportedly proposed incentives to expand federal domestic production, complementing existing state-level tax breaks.
People with entertainment strategies suggest another approach. “The best way is to limit subsidies provided by different countries so that production can only benefit from economies of scale in one to three locations,” he said. “The problem with subsidies is that as subsidies are increasingly higher in different countries, they become competition.”
Although physical production in the United States has declined in recent years, the Film Association told Bloomberg The U.S. entertainment industry maintains a positive trade balance globally, with exporting three times as much as imports. US streaming services such as Netflix and Amazon Prime rely on global audiences to justify their massive content investment.
As Hollywood executives eagerly track developments, the message is clear: In an increasingly interconnected industry, international success determines whether a franchise is live or dead, new trade barriers could ruin studios’ withdrawal from a curving library for the past five years. For governments related to the strength of the U.S. economy, the collapse that triggers one of the country’s most valuable export industries will be an unexpected plot twist, not a good plot.
