President Trump announced a proposal to impose a 100% tariff on movies produced outside the United States, citing national security concerns. The specifics of this tariff are unclear, as it is uncertain whether it will affect all foreign films, including independent and streaming-exclusive movies, or just those benefiting from foreign tax incentives. Hollywood has increasingly relied on foreign locations for filming due to lower costs and tax incentives offered by countries like Britain and Canada, leading to job losses among U.S. film workers. California, facing economic pressures from this trend, is considering increasing its film tax credits in response. Meanwhile, Trump appointed actors Mel Gibson, Sylvester Stallone, and Jon Voight as ambassadors to revitalize Hollywood's domestic business, although their efforts have yet to be publicly realized.

President Trump's proposed 100% tariff on foreign-produced movies is framed as a national security measure but lacks clarity in its scope and implications for the film industry.

There is ambiguity regarding whether the tariff will apply to all foreign films, including independent and streaming services, or only those benefiting from foreign tax incentives.

Hollywood's trend of filming abroad is driven by cost savings and tax incentives from countries like Britain and Canada, resulting in job losses for American film workers.

The Motion Picture Association has not commented, although its 2023 report noted that the U.S. film industry has a positive trade balance globally.

California is responding to the economic shift by attempting to increase its film tax credits, as the state's film industry faces challenges similar to those of the auto industry in Detroit.

President Trump appointed Mel Gibson, Sylvester Stallone, and Jon Voight as ambassadors to strengthen Hollywood's domestic market, although they have not yet taken public actions.

The decline in traditional revenue streams such as DVD sales and theater attendance, alongside tighter production budgets, has pressured the film industry to seek more affordable production solutions overseas.