Trump's Film Tariff Proposal Rattles Global Entertainment Industry

President Donald Trump's proposal to impose a 100% tariff on foreign-produced films has jolted Hollywood and the broader entertainment sector, threatening to reshape how Americans consume international content.

The president announced the measure on Truth Social on Sept. 29, calling for a tariff on "any and all movies that are made outside of the United States." He framed the policy as a response to what he described as theft, writing that "our movie making business has been stolen from the United States of America, by other countries, just like stealing candy from a baby." Trump singled out California as being "particularly hard hit."

Critical details remain unclear, including whether the tariff would apply to streaming rights, physical media or only theatrical releases. Studios, streaming platforms and distributors say they haven't received clarification from the White House on implementation, creating what executives have described as a chilling effect in acquisition and licensing markets.

Legal analysts have flagged potential conflicts with the Berman Amendment, part of the International Emergency Economic Powers Act, which prohibits presidential regulation of "informational materials" including films. Experts also note that modern films are frequently produced, financed and edited across multiple countries, complicating enforcement.

Anime Sector Faces a Steep Risk

The anime market appears particularly exposed. Recent theatrical releases have demonstrated the genre's commercial potential in the U.S., with "Demon Slayer: Kimetsu no Yaiba – The Movie: Mugen Train" generating $49.5 million at the domestic box office and "Jujutsu Kaisen 0" taking in $34.5 million. The latest "Demon Slayer: Infinity Castle" film has already earned $118.2 million domestically and more than $616 million worldwide.

Distributors such as Crunchyroll could be forced to scale back theatrical runs or cancel them entirely if licensing costs double. The financial pressure would likely cascade to consumers through higher ticket prices, increased streaming subscription fees and more expensive physical media like Blu-rays.

Industry analysts warn the tariff could inadvertently drive audiences toward piracy if legal options become prohibitively expensive, a development that would ultimately hurt content creators.

International producers have expressed confusion about the proposal's scope. Bollywood filmmaker Kabir Khan called it "puzzling," while Shibasish Sarkar, president of the Producers Guild of India, said most studios remain "flummoxed" by its implications for co-productions.

For now, studios and distributors are in a holding pattern, awaiting clarity on whether the proposal will advance and what form any final policy might take.