The White House appeared to walk back an announcement by President Donald Trump that he would slap 100% tariffs on foreign-produced films to boost Hollywood.
A White House statement on May 5 said that "no final decisions on foreign film tariffs have been made" after Trump's declaration made waves in the entertainment industry.
Trump posted on social media May 4 that he was "authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands."
The president said he was concerned incentives luring filmmakers overseas will send the American movie industry to "a very fast death."
Although Trump said his team was moving forward on the tariffs, White House spokesman Kush Desai seemed to walk that back in the May 5 statement, while also saying " the administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again."
The statement added more confusion to an announcement that already was drawing questions about how the tariffs would be implemented and what exactly they would apply to.
It was unclear if the tariffs would apply to movies on streaming services as well as those shown in theaters, or if they would be calculated based on production costs or box office revenue. The Motion Picture Association, which represents the major studios, had no comment.
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The announcement about the movie industry comes as Trump has levied a slew of tariffs on various countries and industries, including foreign steel, aluminum and cars. The tariffs have spooked investors and unsettled the economy.
Trump recently eased his auto tariffs, saying he wants to give car companies "a little bit of flexibility." He also paused big reciprocal tariffs on every foreign nation, except China, for 90 days. China faces a 145% tariff.
Trump raised concerns about national security and foreign propaganda in announcing the movie tariffs.
"Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat," he said. "It is, in addition to everything else, messaging and propaganda!"
A 2023 report by the MPA found the U.S. film and television industry has "a positive balance of trade in every major market in the world," with exports more than three times imports. The industry has a trade surplus of $15.3 billion and supports 2.3 million jobs, including 856,000 direct jobs, according to the report.
Movie and TV production has been leaving Hollywood for years, heading to locations with tax incentives that make filming cheaper.
In 2023, about half of the spending by U.S. producers on movie and TV projects with budgets of more than $40 million went outside the United States, according to research firm ProdPro.
Governments around the world have increased credits and cash rebates to attract productions and capture a greater share of the $248 billion that Ampere Analysis predicts will be spent globally in 2025 to produce content.
Trump complained that "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States."
On May 5, leaders in Australia and New Zealand responded to Trump's tariff announcement by saying they would advocate for their local industries. Some Marvel superhero movies have been filmed in Australia, while New Zealand was the backdrop for "The Lord of the Rings" films.