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President Donald Trump has announced he will impose a 100% tariff on all movies produced outside the United States, a move that could shake the global film industry.

The declaration, posted on Truth Social Monday, lacked details on how or when such a policy would take effect.

If carried out, this would mark the first time a US president has tried to place a tariff on a service rather than a physical good.

Trump argued that tax incentives abroad have pulled film production away from the U.S., with California being "particularly hard hit."

The idea isn't entirely new. Trump first floated the threat back in May, catching Hollywood insiders by surprise.

At the time, one industry source told CNN the plan sounded "shocking" and nearly impossible to enforce.

Film production often spans multiple countries, making it difficult to define what qualifies as foreign-made.

Entertainment executives worry the tariffs would discourage studios from filming overseas, even when international locations or lower costs are necessary.

Jay Sures, vice chairman of United Talent Agency, noted earlier this year that studios often find it cheaper to fly crews abroad than to film entirely in the US.

Experts Question Trump's Movie Tariff Plan

Experts also stress the practical challenges. "Traditional tariffs apply to goods crossing borders, not digital services like films," explained Ann Koppuzha, a business law lecturer at Santa Clara University.

Implementing such a rule could require Congressional approval, making its future uncertain.

Despite Trump's warning, American films remain the dominant force worldwide. In 2023, US movies earned $22.6 billion in exports and generated a $15.3 billion trade surplus, according to the Motion Picture Association, AP News reported.

Analysts argue that Hollywood is still far ahead of competitors, with a strong presence in nearly every major market.

But experts warn that retaliation is possible. Barry Appleton of the New York Law Center said other countries could strike back by taxing or limiting American films, even though they remain global box-office leaders.

"What this policy does is actually cook the golden goose that's laying the golden eggs," Appleton warned.

Trump's proposed movie tariff is part of a larger trade agenda. His administration is preparing to impose new duties on imported pharmaceuticals, heavy trucks, and furniture. On Monday, he also promised a "substantial" tariff on all imported furniture.

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