US President Donald Trump has demanded a 100 per cent tariff on foreign films, meaning the European movie industry might be badly hit.
Posting on on his social media platform Truth Social, Trump warned that the US movie industry was dying as other countries were trying to “draw filmmakers away from the United States”.
According to him, that even presented a “national security threat” as foreign films were filled with “messaging and propaganda”.
Trump said he had instructed the US Department of Commerce to begin to implement a 100 per cent tariff on foreign imported films.
US commerce secretary Howard Lutnick responded to the demand by replying: “We’re on it.”
A spokesperson for the European Commission stressed the body was not in the habit of reacting to posts on social media.
EC spokesman for trade, Olof Gill, said a European Union response would come if concrete measures rather than statements online were announced.
If such a foreign films tariff was instated, it would effectively double the cost of distribution and raise box-office prices of European movies for cinema-goers.
That could lead to a sharp decline in exports, reducing revenue for European studios, distributors and talent, observers said.
Smaller, independent European filmmakers, already reliant on international sales, would be hit hardest, they added.
Europe could respond in kind with similar duties but it had refrained from doing so in other sectors when Trump launched his first tariffs.
With US movies dominating the European markets, Brussels might be even more reluctant as the EU could be perceived as being responsible for making popular movies less accessible.
Co-productions with US partners could mitigate tariff costs but would dilute creative control. experts said.
Europe could seek exemptions via trade talks, leverage WTO rules – although enforcement of such was always slow – or boost domestic consumption through subsidies or festivals.
The immediate effect, though, would likely be a painful contraction in the industry, they added.
Countries including the UK, France and Hungary, which provided significant filming and post-production services for US studios, could see reduced demand for their services if US companies shifted to domestic production to avoid tariffs. That might result in job losses in Europe’s film industry.
The Motion Picture Association reported that US movies generated $22.6 billion (€19.9 billion) in exports and a $15.3 billion (€13.4 billion) trade surplus in 2023, indicating Hollywood’s reliance on international markets, including Europe.
A retaliatory 100 per cent EU tariff on US films, could disrupt Hollywood’s revenue model, particularly for major studios and streaming platforms,, according to those in the industry.
That could be part of a broader trade war, affecting not just films but other goods and services.
Former senior US commerce official William Reinsch told Reuters on May 5 that retaliation could be “devastating” for the US film industry, which had more to lose given its export dominance.
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 5, 2025
