President Trump announced the tariff via his social media platform, Truth Social, stating that the American movie industry is “dying a very fast death” due to foreign incentives luring filmmakers away from the U.S.. He described this as a national security threat, arguing that it was messaging and propaganda by other nations.
Trump authorized the Department of Commerce and the United States Trade Representative to immediately begin the process of instituting the 100% tariff on all foreign-produced films entering the U.S..
Kapur, known for films like Mr. India and the Elizabeth franchise, pointed out that over 75% of Hollywood’s box office revenue comes from outside the U.S., and a significant portion of film budgets is spent internationally. He believes that rather than strengthening the American film industry, this move might encourage Hollywood to relocate production outside the U.S., which is the opposite of Trump’s intended outcome.
Hollywood executives are reportedly uncertain about how the tariffs will be implemented, including whether they will apply to streaming services or just theatrical releases. The Motion Picture Association, which represents major studios like Disney, Netflix, and Warner Bros, has not yet commented on the policy.
Meanwhile, China recently announced a reduction in Hollywood film releases in response to U.S. tariffs on Chinese products, further escalating the trade war between the two nations.
Indian filmmaker Vivek Agnihotri also criticized Trump’s decision, warning that it could harm India’s struggling film industry. Anurag Kashyap shared Trump’s comments on Instagram without adding his own opinion.
