The debate over how Donald Trump's presidency could rattle Hollywood has been around ever since he took office. And it is not without reason. After all, Trump came to the White House with a résumé full of onscreen credits. Those over-the-top boardroom dramas and the iconic “You’re fired!” helped him create a space in American pop culture. But now, his Hollywood footprint is stretching beyond Simpsons jokes and celebrity cameos.

A recent tariff announcement coming from the president could shake up the industry in a major way.

For the second time this year, Donald Trump has slapped a 100% tariff on films made outside the US. He recently took to Truth Social to accuse other countries of siphoning business from the United States. He also took a swipe at California Governor, calling him “weak and incompetent,” before announcing, “I will be imposing a 100% Tariff on any and all movies that are made outside of the United States”. In other words, any foreign-made film imported into the US could see its costs double at the border.

A full 100% tariff would drive up US distribution costs and squeeze profit margins. Smaller and mid-budget movies, which often depend on diaspora audiences, would feel it the most. But the consequences extend to big studios, too. Many American films are partly or fully shot abroad to save money. These steep tariffs could jeopardize their financial viability and potentially send more releases straight to digital platforms rather than theaters. And seeing as this is not his first time talking about it, the entertainment industry might be bracing for a big shake.

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In May, Trump voiced a similar plan to revive the struggling American film industry and restore its past prominence.

Donald Trump called for a 100% tariff on foreign films in May as well, citing national security concerns. He claimed that efforts by other countries to attract filmmakers abroad is impacting US in a negative way. "This is a concerted effort by other Nations and, therefore, a National Security threat," he wrote on Truth Social. Although he did not say how or when it would happen, the announcement has nonetheless sparked international reactions and rattled Hollywood. One of his tariff calls also invited a Hollywood ban in China in retaliation earlier this year.

United Talent Agency’s vice chairman warned CNN that Trump’s move could bring global movie production to a halt. “It has the ability to bring the movie business to a standstill – which is the last thing Hollywood needs after dual strikes and a content recession,” he said. While nothing has been finalized yet, Trump sure appears set to enter a more complicated relationship with the entertainment industry this term.

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