'No final decisions': White House walks back Trump’s 100% foreign film tariff threat - Did the US President speak too soon?
Written By Prapti Upadhayay
Published: May 05, 2025, 18:03 IST | Updated: May 05, 2025, 18:03 IST
Story highlights
World: In a social media post on Sunday night, Trump claimed, “The Movie Industry in America is DYING a very fast death,” and said a foreign film tariff could help revive it.
As Hollywood is still trying to understand what a possible 100% tariff on foreign films could mean, following a dramatic post from President Donald Trump suggesting that such a move is on the table, the White House seemed to walk back on what US President Donald Trump said on Monday (May 05).
On Monday, the White House stepped in to clarify the situation. Spokesman Kush Desai told The Hollywood Reporter, “Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
The statement suggests the plan is still in its early stages, with the legal and logistical details far from finalised. Industry experts have raised questions about whether such a tariff could even be applied, given the complexity of taxing services like film production, especially when international co-productions and streaming content blur geographical lines.
In a social media post on Sunday night, Trump claimed, “The Movie Industry in America is DYING a very fast death,” and said a foreign film tariff could help revive it.
He has directed the Commerce Department and the US Trade Representative to begin exploring the option of imposing such a tariff, adding that it was part of his broader goal to “Make Hollywood Great Again.”
The White House has voiced concern that too many U.S. productions are being shot overseas, lured by lower labour costs and generous tax credits. While some American states also offer tax incentives, they are often not enough to compete with countries that provide substantial financial breaks to foreign film crews.
The unexpected announcement has left many in the entertainment world scrambling for answers. There’s uncertainty around whether the tariffs would affect TV shows, streaming platforms, co-productions, or even films partially produced in the US but completed abroad.
Executives, filmmakers, and producers are unsure how such a policy would be implemented or how it might impact projects already in progress.
Trump has appointed actors and directors Jon Voight, Sylvester Stallone, and Mel Gibson as “special ambassadors” to Hollywood. According to reports, Voight has been working on a strategy to bring more film production back to the U.S., though it’s unclear if tariffs were ever part of that plan.
Ironically, Mel Gibson himself could be directly affected. His next film, a follow-up to The Passion of the Christ, is set to begin filming in Italy later this year, potentially making it one of the first projects hit by the proposed tariff if it ever moves forward.