On May 4, 2025, U.S. President Donald Trump announced a 100% tariff on all foreign-made movies, citing the decline of the domestic film industry due to international incentives attracting productions overseas. Declaring foreign film production a national security issue involving messaging and propaganda, Trump directed agencies like the Department of Commerce to begin implementing the tariff, though specifics remain unclear. Questions linger about whether the tariff applies to streaming services or theatrical releases, or how it will be calculated. Commerce Secretary Howard Lutnick confirmed action was underway. Major studios like Disney, Netflix, and Universal frequently film abroad in places like Canada, Britain, Australia, and New Zealand—countries that have boosted tax incentives to lure productions. In 2023, half of U.S. film and TV project budgets over $40 million supported international shoots. Hollywood production in Los Angeles has declined by nearly 40% over a decade, further exacerbated by events like the January wildfires. Industry leaders are pressing California's Governor Newsom for better tax incentives to stem the exodus. Critics warn that the tariff could provoke retaliatory measures, threatening more harm than good to the U.S. film industry. (PC: Reuters)