Trump took to Truth Social Sunday to announce he is “authorizing” the Department of Commerce and the US Trade Representative to impose 100% tariff on “any and all” movies produced in “foreign lands.”

In a move that sent shockwaves through Hollywood, Trump deemed foreign productions a “national security threat” to the American movie industry, adding that they not only draw filmmakers out to other markets but also bring “messaging and propaganda” into the United States.

It was also unclear what the impact would be on the many films that shoot overseas, like sequels to major franchises such as “Avatar,” “The Avengers,” and “Mission: Impossible.” Studios were hoping to get more information about whether certain films that had already been completed or were already in production would be exempt. There was also confusion about why the president has singled out movies, while not mentioning television production.

As Trump’s social media comment suggests, many Hollywood productions have moved to Canada and overseas to countries including the U.K., Australia, New Zealand and Hungary because they offer compelling financial incentives that help lower budgets.

But movies also shoot internationally because they want to film in exotic locations, something that applies to globe-trotting franchises such as James Bond and “Fast and Furious.”

Trump has named Sylvester Stallone, Mel Gibson and Jon Voight as “special ambassadors” to the American film industry, though no significant developments have been made by the trio since their appointment in January.

Although Trump claims that Hollywood is down, 2025 has actually seen rebound in box office numbers since last year. Overall domestic revenues are up 15.8% head of 2024.

Though still 31% behind 2019, hits like “A Minecraft Movie,” “Sinners” and “Thunderbolts*” bring hope of closing the gap.

Production, however, has struggled to come back forcefully after the 2023 actors and writers strikes. Forty percent fewer films and TV shows have been shot in the US since a deal between the unions and the studios was reached. At the same time, media conglomerates have instituted widespread cost-cutting measures that have led companies to trim their programming and film slates.