Trump announces 100% tariff on foreign made films – how will it impact Hollywood and America

Yesterday on 29th Sept’ 2025, USA president Donald Trump announced to impose a tariff of 100% tariff on foreign made movies in USA that is films produced outside USA and imported to USA. It is an unconventional proposal and might have below impact, have shared few details below

If we compare the Film and Entertainment industry for 2024, USA stands at staggering 870 billion and all other countries combined stands at approx. 2.03 trillion USD.

Below are the pictorial comparison of top 10 countries globally in Film and Industry market in Billion USD.

IN 2024, USA films had a share of approx. 70% of the global box office revenue, whereas it was  90% in 2010.

The non-USA films share in USA domestic market is negligible.

The exact contribution of Hollywood in USA GDP cannot be predicted easily as it’s a huge ecosystem consisting of crew, production services, local houses involvement, hotels, transport, tourism to different locations and many other things.

How and when the tariff will be applicable

Its not confirmed now but Trump may initiate it within a month from Nov’ 2025 as for his earlier the imposition was in a month time after announcement.

Grounds on which clarity is needed

• How to treat the movies which are partially shot abroad.

• How to treat a non - USA made movie partially shot in USA.

• Which entity will bear the tariff – distributor, licensor or end consumer.

• How the digital imports of the movie will take place with the tariff as there is no port movement involved

Critics counter -

• This could encourage retaliatory measures from other countries also and Hollywood earns a significant from the international market distribution of movies.

• It can face a legal challenge as this would be first of its type of digital tariff.

Will keep you updated.