Already reeling from the devastation of recent wildfires, Hollywood is now facing a fresh threat from Donald Trump - a 100 per cent tariff on films made outside the States. The move will come as a major blow to the UK movie industry, which was expected to help rescue American filmmakers following the deadly infernos.

Trump announced the proposed levy on his Truth Social platform, declaring foreign-made movies a “National Security threat” and accusing other countries of using taxpayer-funded incentives to lure away American film productions. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump wrote. “It is, in addition to everything else, messaging and propaganda!”

The policy, which lacked any detail, will authorise the US Department of Commerce and the US Trade Representative to begin imposing the punitive tariffs, in what he called an effort to revive a domestic film industry that he claims is “dying a very fast death.”

But for a Hollywood already struggling to rebuild after one of its worst natural disasters in decades, industry insiders say the move could be catastrophic.

“Between the fires and now this, it's a one-two punch to the gut,” said an executive at a major studio who requested anonymity.

“We’ve lost soundstages, sets, and entire production schedules to the wildfires. And now we’re being told if we shoot overseas to stay on budget, we’ll be punished? It’s madness.”

The threat comes as US film production has already declined sharply. According to a report by industry tracker ProdPro, spending on American film productions fell by 26 per cent last year to £11 billion. By contrast, countries like the UK, Canada, Australia and New Zealand have seen production spending surge, buoyed by generous tax credits and robust infrastructure.

Trump blamed this shift on a “concerted effort” by foreign governments to undermine Hollywood, while offering no evidence.
His administration has yet to clarify whether the proposed tariffs would apply to US companies filming abroad, foreign films distributed in the States, or content produced for streaming platforms like Netflix.

Commerce Secretary Howard Lutnick offered little insight beyond a terse statement: “We’re on it.”

Film trade groups and international cultural agencies remained silent Thursday as the industry tried to assess the implications.
The Motion Picture Association, the British Film Institute, and the UK’s Department for Culture, Media & Sport all declined to comment. Meanwhile, Australia and New Zealand have vigorously defended their film sectors.

“Let no one doubt our support for the Australian screen industry,” said Australia’s Home Affairs Minister Tony Burke. New Zealand

Prime Minister Christopher Luxon echoed that sentiment, saying, “We’ll be a great advocate for that sector and that industry.”

Complicating matters further, several upcoming blockbusters by American studios - Deadpool & Wolverine, Wicked, and Gladiator II - were all filmed overseas and could be caught in the policy crossfire. Trump’s pledge to revive the domestic film industry rings hollow for many in Hollywood, especially given the damage his broader economic policies have already inflicted.

Since returning to office in January, his tariff blitz has disrupted trade relationships worldwide and contributed to mounting global economic uncertainty. Ahead of his inauguration, Trump had appointed actors Jon Voight, Mel Gibson, and Sylvester Stallone as “Special Envoys” tasked with revitalising Hollywood.

But insiders say those appointments have amounted to little more than symbolic gestures as the industry faces tangible threats.
“The wildfires are destroying our homes, and now the president wants to set the rest of our economy on fire,” said a union rep for film workers in Burbank. “It’s hard to imagine a worse time to attack your own industry.”