Global Supply Chains Hit by Trump’s Tariff Rule. Here’s What It Means:
On Sunday 4th May 2025, Trump stunned Hollywood by declaring ‘Commerce Department and USTR to impose a 100% tariff on every movie coming into our country produced in foreign lands’ via his X account. His declaration sent the industry into a frenzy just as Avengers: Doomsday has begun filming in England.
C21’s North American Jordan Pinto points out that Los Angeles’ share of North American production has fallen by almost 40% in the past decade, according to FilmLA. Although the tariffs may lure some projects back “the cost to consumers and America’s trading partners could be enormous.”
Jon Voight, referred to as Trump’s ‘special ambassador’ has circulated a draft plan pairing a new federal production tax credit with penalties on shows that could have been filmed domestically. Yet the document is silent on cross-ownership such as whether Paramount UK’s original shows for Channel 5 would be hit with tariffs when they stream on Paramount+ in the US.
Governments abroad are bracing for impact as Australia, Canada and New Zealand held emergency calls to coordinate responses. Whilst UK officials have warned that the tariff could potentially “wipe out” Britain’s £6 billion screen sector. Croatia, Dubrovnik home to Game of Thrones fears cancelled location shoots according to The Guardian.
Frank Spotnitz argues state leaders neglected the industry and allowed it to “bleed dry” over the last 20 years which has failed to keep production from drifting overseas. Spotnitz told C21 that he thinks the competition is healthy, and should spur smarter incentives to film in New Mexico, Louisiana, New Jersey and other states.
FilmLA shares Economists echo the uncertainty and are unsure whether this tariff would help restart California’s stages. Without competitive state incentives, producers could pivot to non-U.S. stories or virtual production. There also could be a backlash on the consumers, as studios may simply pass the costs straight to ticket prices and streaming apps which makes the consumers pay more.
Since Trump’s post no further details have surfaced, leaving the global industry and thousands of jobs in a limbo. Commerce and USTR have 90 days to draft enforcement, but for now we can only wait.
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