Lights, Camera, Tariffs! President Trump’s Plan Puts Hollywood in a Plot Twist
Trump’s Tariff Gambit Threatens to Rewrite Hollywood’s Global Playbook
Editorial Team (ET)May 6, 2025
Lights, camera, tariffs! In a plot twist that could rival any Hollywood thriller, President Donald J. Trump, the 47th and current President of the United States, sent shockwaves through the entertainment industry with a bombshell announcement on Truth Social late Sunday. His plan? A staggering 100% tariff on all foreign-produced films, a move that sent Netflix (NFLX), Warner Bros. Discovery (WBD), and Paramount Global (PARA) stocks plummeting as markets opened Monday. By midday, Netflix was nursing a nearly 2% drop, with Warner Bros. and Paramount each down about 1%, while Disney (DIS) held steady, seemingly unfazed—for now.
Trump’s Hollywood Crusade: A Tariff Tantrum or Strategic Strike?
With his signature bravado, President Trump didn’t hold back. “The Movie Industry in America is DYING a very fast death,” he proclaimed, pointing the finger at foreign governments dangling tax incentives to lure American studios overseas. He framed it as nothing less than a “concerted effort” by other nations—an economic and cultural assault that he deems a “National Security threat.” His fix? Slap a 100% tariff on any film not shot on U.S. soil, a policy that’s left Tinseltown reeling faster than a bad opening weekend.
The industry, still dusting itself off from writers’ and actors’ strikes and the pandemic’s lingering hangover, was caught flat-footed. Hollywood veterans wasted no time clapping back. Chris Fenton, a seasoned exec, warned that such a sweeping tariff could grind production to a halt, echoing the gridlock of recent labor disputes. Kathryn Arnold, a film producer with decades in the game, didn’t mince words, calling the tariffs “insane and devastating.” She painted a bleak picture: mid-budget films crushed, studios forced to swallow skyrocketing domestic labor and production costs, and a ripple effect that could leave crews jobless and vendors boarded up.
Blockbusters in the Crosshairs: From Avengers to Avatar
If Trump’s tariff threat becomes reality, the collateral damage could read like a summer release schedule. Disney’s Avengers: Doomsday and Spider-Man: Brand New Day, both shot abroad, are squarely in the firing line. Paramount’s Mission: Impossible — The Final Reckoning, filmed across multiple countries, isn’t safe either. James Cameron’s Avatar: Fire and Ash, a New Zealand production, and Lionsgate’s Ballerina, lensed in the Czech Republic, face the same peril. Even Lucasfilm’s upcoming Star Wars chapter, Starfighter, with its UK roots, could feel the squeeze. The global filming model—built on co-productions, foreign tax breaks, and location-driven storytelling—now hangs in the balance.
Let’s talk dollars and sense. Hollywood’s bottom line thrives on international markets. Pre-COVID, China alone accounted for up to 40% of global box office revenue, though U.S. studios typically pocketed just a quarter of that due to revenue-sharing rules. Even so, foreign markets often drive 60–70% of a film’s total haul, keeping studios afloat when domestic audiences ghost them. Trump’s claim that the U.S. film industry is “dying” ignores a key stat: it’s a net export business, with American movies and TV shows dominating global culture, according to the Motion Picture Association.
But here’s the rub: tariffs cut both ways. If the U.S. slaps duties on foreign-made films, other nations could retaliate, blocking American releases, throttling streaming platforms like Netflix and Disney+, or slashing revenue-sharing deals. A cultural trade war could erupt, with Hollywood’s global streamers caught in the crossfire.
