• Trump plans to impose a 100% tariff on films produced outside the U.S.
• The President claims the U.S. movie industry is facing a "very fast death" due to foreign competition.
• Hollywood insiders express confusion and skepticism over the practicality and impact of proposed tariffs.
• Concerns arise over potential job losses and increased costs in the film industry.
• Major studio stocks have dropped following the announcement.

U.S. President Donald Trump announced on Sunday his intention to impose a 100% tariff on all films produced outside the United States. He characterized the exodus of filmmakers as a “National Security threat,” claiming “the Movie Industry in America is DYING a very fast death,” in a post on his Truth Social platform. Trump argued that foreign nations are offering “all sorts of incentives” to lure studios away from the U.S., calling for a return to domestic filmmaking with the rallying cry, “WE WANT MOVIES MADE IN AMERICA, AGAIN!” according to Reuters and BBC.

The response from the Hollywood community has been one of skepticism and confusion. Many executives described Trump's proposal as “nonsensical” and poorly thought out, citing the complexity of modern film production, which often includes multiple locations and international crews. Notably, entertainment lawyer Jonathan Handel asked, “If the stunt is Tom Cruise climbing up the Eiffel Tower, what are we supposed to do, shoot at the replica in Las Vegas?” Such concerns were echoed in comments from various industry insiders and analysts, reflecting apprehensions that such tariffs would lead to increased costs and reduced production, according to India Times and Bloomberg.

Market reactions to Trump's tariff announcement have been swift. Major studio stocks declined significantly, with companies like Netflix experiencing nearly a 3.4% drop in value. Analysts noted that raising production costs through tariffs would likely lead to fewer films being made and higher ticket prices, as consumers absorb these costs. Additionally, the White House, while supportive of Trumps objectives, has stated that “no final decisions” on the implementation of the tariffs have been made, leaving the entertainment industry in a state of uncertainty, as reported by Channel News Asia and Forbes.

Trump's proposed tariffs have sparked significant debate on their potential effectiveness. Industry experts warn that such measures could backfire, harming the very filmmakers Trump aims to protect. Many are advocating for the expansion of federal tax incentives instead of tariffs, which, they argue, would provide a more constructive solution to stimulate domestic film production. “Tariffs risk triggering retaliation, inflating costs, and stalling productions,” emphasized the group Producers United, voicing concerns echoed across the industry, according to Business Insider and HuffPost.

As the industry grapples with these developments, the ultimate impact on Hollywood remains uncertain. The proposed policy raises numerous questions about its implementation and effectiveness in supporting U.S. film production amidst an increasingly globalized film industry. The responses highlight a deepening divide on the future direction of film policy in America, as pointed out by The Jakarta Post and ABC News.