President Donald Trump’s dramatic announcement of a 100% tariff on all films produced outside the United States has sent shockwaves through the global entertainment industry, raising alarm in Hollywood and other international film hubs. Trump claims the move is necessary to combat what he calls a “national security threat” posed by foreign incentives that lure U.S. filmmakers overseas.
In a post to Truth Social, Trump declared that the American movie industry is “dying a very fast death” due to aggressive foreign incentives, calling it a “concerted effort by other Nations” and equating it to “messaging and propaganda.”
Commerce Secretary Howard Lutnick posted on X, “We’re on it,” signaling that implementation planning is underway—though neither he nor Trump have offered any clarity on how the tariff would be enforced.
The Canadian Media Producers Association (CMPA) quickly condemned the move, warning of severe economic hardship on both sides of the border.
“The proposed actions … will cause significant disruption and economic hardship to the media production sectors on both sides of the Canada–US border,” the CMPA said.
Toronto and Vancouver, two of the most popular North American production hubs, could face major disruptions. Toronto’s municipal government told AFP it was reviewing the policy’s possible impact, as the city ranked first among studio executives’ top locations for filming in 2025–2026, thanks to competitive tax credits and experienced crews.
The backdrop to Trump’s decision includes years of production flight from Hollywood, spurred by global tax incentives, a pandemic-induced shift to streaming, and economic uncertainty. According to FilmLA, production in Los Angeles fell nearly 40% over the last decade, with recent wildfires in January adding to instability.
Major studios like Netflix, Disney, and Universal frequently shoot abroad. In 2023, half of all movie and TV spending over $40 million occurred outside the U.S., according to ProdPro. Locations like Britain, Central Europe, and Australia outperformed California in studio preference, with the Golden State now ranked only sixth in popularity.
