Trump Slaps 100% Tariff on Foreign Films—Hollywood’s Bailout or Protectionist Power Play?
In a move that’s rattling global entertainment markets, the former president imposes draconian import taxes on films—just as streaming platforms were starting to ignore borders anyway.
Wall Street analysts predict a brief bump for legacy studios... followed by the usual creative accounting to bypass the rules. Meanwhile, indie filmmakers are scrambling to register as ’documentary educational content’—the crypto loophole of trade tariffs.
China plans to cut American movie quota
China had already begun to act just weeks before Trump’s announcement. On April 10, China’s Film Administration announced it would cut the number of American movies permitted into the market. The action is believed to be in retaliation to previous U.S. talks of increasing tariffs on imported entertainment.
The administration said in a public statement that the U.S. government’s abuse of tariffs to interfere with and suppress legitimate industries had reshaped domestic audiences’ attitudes toward American films. It added that China would follow market rules and respect audience preferences by reducing the number of U.S. films allowed into the country.
China is the world’s second-largest film market, and Hollywood increasingly depends on it. But it has become more protective of its homegrown entertainment industry. For the last few years, Chinese films have been kicking the backsides of Hollywood imports at the local box office.
In 2024, U.S. movies accounted for about 14% of China’s box office. This is a significant decrease from 36% in 2018. That partly has to do with the fact that Chinese audiences are increasingly weary of sequels and reboots and what they view as formulaic storytelling from Hollywood, experts say.
The Chinese government is now backing more local productions and encouraging audiences to watch homegrown content. The most recent attempt to reduce the United States imports of films threatens to hit Hollywood where it hurts.
Hollywood studios struggle under trade tensions
Hollywood studios are looking at these developments with increasing alarm. The President’s new 100% tariff, though, would increase the cost for foreign films to play in the largest movie market in the world, the United States. This could wane competition for American films and escalate tensions among the nation’s major trade partners: China, France, South Korea, and India.
Meanwhile, China’s reduction of U.S. film imports is already having an impact. For studios like Disney, Warner Bros., and Paramount, which use international markets to help cover production costs, the dependence is even greater for costly blockbusters.
Companies that have long wielded great power are now on the brink of ruin because of the pandemic. Dwindling ticket sales in China — once a top early revenue market for Hollywood — has left major studios scrambling for new sources of revenue.
Film critics also caution that moviegoers could be denied various stories worldwide. If the move entails increased tariffs worldwide, international films could become a thing of the past in American theaters.
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