In a bold escalation of his protectionist agenda, US President Donald Trump announced on September 29, 2025, via Truth Social, his intention to impose a staggering 100% tariff on "any and all movies that are made outside of the United States." This move, first teased by Trump in May 2025, targets what he describes as the "stealing" of America's film industry by foreign countries, likening it to "taking candy from a baby." Trump singled out California, under Governor Gavin Newsom—whom he labeled "weak and incompetent"—as particularly devastated, claiming the tariffs would revive domestic production and safeguard jobs. The announcement has sent shockwaves through Hollywood and global cinema circles, raising immediate questions about enforcement, legal basis, and broader economic fallout.
Indian filmmaker Kabir Khan, known for blockbusters like *Ek Tha Tiger* and *Bajrangi Bhaijaan*, reacted swiftly with a mix of bewilderment and sarcasm in an interview with NDTV. "I have no idea what he means when he says 'made outside of the United States' because every second Hollywood film is shot outside of the USA, the VFX is executed outside of the USA," Khan remarked. "And tariff on what? The ticket price? His statement is too broad to be understood properly. Firstly, let's see if he remembers this tomorrow when he wakes up." Khan's critique highlights the absurdity of applying such a policy to an industry where co-productions span continents—think *Avengers: Endgame*'s VFX work in India or *The Mandalorian* filmed in the UK—potentially crippling even American studios reliant on international talent and locations.
The proposal arrives against a backdrop of Hollywood's protracted struggles, exacerbated by the 2023 Writers Guild and SAG-AFTRA strikes, a 20-30% plunge in box office revenues since 2019 due to streaming wars, and over 100,000 job losses in the sector over the past two years. Analysts estimate that a 100% tariff, if based on box office sales or production budgets, could render many international releases unprofitable in the US market, which accounts for 40% of global film revenue. Studio executives, speaking anonymously to Reuters, expressed being "flummoxed" by logistical challenges, such as defining a "foreign-made" film when financing, post-production, and distribution often cross borders. The Motion Picture Association has yet to comment officially, but insiders warn it could stifle co-productions worth $5-7 billion annually to the US economy.
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Trump's tariff rhetoric extends beyond cinema, forming part of a sweeping trade offensive. Just days earlier, on September 26, he unveiled duties including 100% on branded drugs (with factory-building exemptions), 25% on heavy trucks, 50% on kitchen cabinets and vanities, and 30% on upholstered furniture—set to activate October 1—to counter competition from China and Vietnam. He also threatened "substantial tariffs" on furniture imports to revive industries in North Carolina and South Carolina. California Governor Newsom fired back on X, mocking Trump's plan: "You’re already paying more for eggs, coffee, toys, shoes, electricity, furniture, cars, and flights. Now, Trump wants to raise taxes to see the movies. PAY MORE AND ENJOY NOTHING. That’s Donald Trump’s America." Democratic Rep. Laura Friedman, a former producer, advocated for federal tax credits over tariffs, arguing the latter would hike consumer costs without preserving jobs.
As the dust settles, Trump's film tariff threat underscores deepening US-India cultural ties under strain, with Bollywood exports like *RRR* and *Pathaan* earning millions in the US. Khan's response echoes global sentiments, with Canadian and European leaders decrying potential investment chills. Legal experts question Trump's authority, citing ongoing Supreme Court challenges to his August 2025 worldwide tariffs. If implemented, the policy could reshape international film distribution, forcing studios to reshore production at astronomical costs—estimated at $10-15 billion industry-wide—or risk alienating audiences with higher ticket prices. For now, the entertainment world watches warily, wondering if this "never-ending problem" is Trump's latest fleeting tweet or a harbinger of cinematic protectionism.
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