(Photo: CFP)
U.S. President Donald Trump's latest salvo in his ongoing trade crusade has brought Hollywood's globalized production model under fresh scrutiny and drawn sharp criticism from industry insiders.
In a post on his Truth Social platform on May 4, Trump announced a proposed 100 percent tariff on films produced overseas and imported into the U.S. "WE WANT MOVIES MADE IN AMERICA, AGAIN!" he declared.
However, the practicalities of the policy remain unclear. Films are generally classified as intellectual property — services rather than physical goods — and have traditionally been exempt from tariffs.
It is uncertain whether the measure would target all foreign-made films or only those produced by non-American companies. Further ambiguity surrounds films made by American studios but shot in overseas locations, a common practice in the industry to reduce costs.
"Trump is notorious for issuing contradictory directives. This appears more like psychological posturing than an actionable policy," said Ma Liming, associate professor at the School of Journalism and Communication at Jinan University. "For now, it's just rhetoric. We'll have to wait and see if it ever materializes."
Trump justified the proposed tariff by claiming that the American movie industry is "DYING a very fast death." U.S. box office revenue has indeed dropped to nearly half its pre-pandemic level, according to CNN.
Yet the notion that tariffs could reverse Hollywood's fortunes is contentious. Many American productions have long relocated overseas in pursuit of tax breaks, cheaper labor, and more flexible regulations. Critics argue that forcing production back to the U.S. would inflate costs without necessarily improving box office performance.
Industry figures have responded with skepticism, with one executive warning that such a blanket measure could paralyze the film business as Hollywood continues to recover from the dual strikes by writers and actors and a slowdown in content production.
Markets appeared rattled, too. Netflix shares dipped on May 5, as investors digested the potential implications of the proposal.
Trump's plan also risks geopolitical fallout. If viewed as a barrier to trade in services, it could prompt retaliatory tariffs from other countries, a dangerous prospect for an industry that relies heavily on international co-productions and foreign audiences.
"Hollywood earns a substantial portion of its revenue abroad," said Ma. "If Trump's plan goes ahead, it could damage America's cultural image and dampen international audiences' enthusiasm for U.S. films."
Ma also suggested the proposal may have less to do with economic policy and more with ideological positioning. "Trump has long targeted liberal cultural elites, and Hollywood represents a value system at odds with his 'America First' rhetoric. This could be about sending a message as much as reshaping trade."
Co-presented by GDToday and the School of Journalism and Communication, Jinan University
Reporter | Liu Xiaodi, Ouyang Zixuan (intern)
Editor | Yuan Zixiang, James, Shen He
