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US President Donald Trump has ordered a 100% tax on all films made outside the US. He announced the new tax, claiming that Hollywood is being "destroyed" as American filmmakers and studios tend to work abroad.
Trump announced the new tax amid growing criticism of the Trump administration due to its aggressive trade policies. "I am authorizing the Commerce Department and the Trade Representative to immediately begin the process of imposing a 100 percent tax on all foreign-produced films coming into our country," Trump wrote on his social network Truth Social. "We want films made in America again."
Commerce Secretary Howard Lutnick reposted Trump's message. "We are working on it," he wrote. But no details have been given on how the new tax will be implemented. Trump's new announcement came as President Trump imposed a 145 percent tax on Chinese goods and said Beijing would reduce the number of American films imported into China.
America's film industry is dying very fast. "Other countries are giving all kinds of incentives to drive our filmmakers and studios away from America," Trump wrote. Trump claims that attracting manufacturing to other countries is a 'national security threat'. "Hollywood and many other areas within America are collapsing," he wrote.
Hollywood is a key sector of the American economy. According to the latest figures from the Motion Picture Association, in 2022, the sector generated more than 2.3 million jobs and $2.79 billion in business. But the Hollywood industry, which has been affected by the strike and the Covid epidemic, has still not been able to catch its momentum.
Strikes and the Covid pandemic have changed the way Americans watch movies. Recently, the number of people watching movies at home has increased more than in theaters. According to a January report by production tracking service ProdPro, the US is a top filming center with production spending of $14.5 billion. But the amount has decreased by 26 percent compared to 2 years ago. A survey of
studio executives reveals their top five preferred locations for 2025 and 2026 are outside the US . Toronto, UK, Vancouver, Central Europe and Australia are ranked first to fifth respectively . America's California is ranked sixth.
Before taking office as president on January 20, Trump appointed longtime supporters Sylvester Stallone, Mel Gibson and Jon Voight as special envoys to Hollywood. Similarly, he said that the entertainment industry will be made 'stronger than before'.
Trump and Republicans have traditionally received little support from the entertainment industry. Stars from Taylor Swift to George Clooney have endorsed Democratic candidate Kamala Harris in the 2024 presidential election.
