RRR a national security threat? Trump's bizarre film tariff and why world might ban Hollywood next

New Indian Express

19-05-2025

Among the many talents of the 45th (and now 47th) President of the United States, Donald Trump—real estate mogul, reality TV star, etc, there is one few know about: award-winning actor. Not the Oscar-winning type, but he's been nominated for four Razzies, for categories such as Worst New Star and Worst Supporting Actor and won 3 for such films as Ghosts Can't Do It, where he played himself (arguably his most challenging role). Never mind if you've never heard of it, cause just like the president said for Canada, never say never.
His next, most challenging role of life might be beyond the gambit of both Oscars and Razzies as he plays a global Tariff Man to Make America Great Again. So far, nothing so good about it. Yet, on May 5th he dropped a bombshell even the greatest SFX or VFX artists of the world can't replicate in their films—a 100% tariff on all movies produced outside the U.S., declaring Hollywood is "Dying a very fast death" while framing incentives given by foreign nations to shoot in their nations as a "national security threat."
Yes, you read that right. If you were to take Trump at his word, RRR, Parasite, and Baahubali are not just cinematic masterpieces—they're covert ops.
As expected, the earthquake's aftershocks were felt through Hollywood, Bollywood, Mollywood... and all the other '23' 'wood' in between. Everyone was left scratching their heads: what does this really mean for films globally? Will it really "save" Hollywood, or just make everything more expensive? And what happens if the world slaps retaliatory tariffs on American films? Could this be the beginning of the end for Hollywood's global dominance—the very thing that has made the U.S. the world's cultural superpower?
The answers, though seemingly simple, are like every Bumble relationship: a rollercoaster of ghosting, gaslighting, and existential dread.
Hollywood's Great Escape: Why Films Fled America in the First Place
Let's get one thing straight: Hollywood hasn't been Hollywood for a while. Sure, the monstrous sign still looms over Los Angeles. But even in those action films where aliens or bombs destroy the said sign, its VFX has been happening everywhere else (including in dingy offices of aamchi Mumbai), but not in America.
The great escape of production from what was Hollywoodland until 76 years ago has been going on for decades, with studios filming abroad for one very good reason: money. Countries such as the UK, Canada, Australia, and Hungary offer lucrative rebates, sometimes amounting to up to 40% of production costs. If you were a producer, why would you shoot in California when Toronto offered you a fat check just for dropping in? Then there's labour costs. Unions in the U.S. ensure fair wages (as they should), but that also means it's 30-40% more expensive to film there. In Budapest? You can hire a crew for a fraction of the cost who are just as good (I know, because parts of a Netflix show I worked on were shot there). And let's not forget the allure of exotic locations. You can't fake Agra's Taj Mahal in Atlanta. Mission: Impossible films in Dubai, Gladiator II in Malta, Dune in Jordan, because well, why build a desert set when you can go to one for nearly the same cost?
The result? Production in Los Angeles has dropped nearly 40% over the past decade. Even California Governor Gavin Newsom (one of Trump's nemeses) admits to the problem, pushing for $7.5 billion in state tax credits to lure production back. But is it enough?
And then there are OTT platforms like Netflix, Amazon Prime, and Disney+, which have transformed global filmmaking into a buffet of options. The Crown? Shot in the UK. Squid Game? South Korea. Money Heist? Spain. Because duh! Though commissioned by the American company Netflix, these shows are set in the country where they were shot. If Trump's tariffs apply to streaming platforms, they might have to double their budgets, pull down foreign content or shoot everything in America. Imagine Amazon Prime trying to shoot season 3 of Paatal Lok in the US to beat tariff restrictions; instead of say Maithili, the actors would have a Miami accent.
The Tariff Tango: What Happens Next?
To be fair, the intention behind the Hollywood tariff isn't wrong. I would like Indian films to be made in India, creating jobs and opportunities for the people of my nation. So, Trump's plan is bold. So, what's the problem: it's vague as hell.
Will it even work? In theory, yes—because if studios can't afford to film abroad, they'll grin and bear it to stay and shoot at home. However, without federal tax incentives, filming in the U.S. would be exponentially more expensive, and new pipelines would have to be created where none currently exist. Studios might just slash budgets, or worse for all AI doomsayers, shift to AI-heavy productions. And who knows, small American indie films, which are usually shot on shoestring budgets in the U.S. anyway, might also benefit. If big studios cut back, indie theatres and streaming platforms could prioritise homegrown talent. So, would this become the golden age of American indie cinema, considering that studios like A24 have already taken it much further than anyone imagined they could?
Here's where things get messy. If the U.S. taxes foreign films at 100%, what's stopping other nations from doing the same to films made in the US? Even before this Hollywood tariff declaration, China announced that it would slash the number of U.S. films allowed in the nation. This would result in massive losses for Hollywood. Warner Bros.' A Minecraft Movie topped the Chinese box office in the first week of April, with ticket sales totalling $14.5 million – around 10% of the global total. Take Godzilla x Kong: The New Empire. It generated $132 million in revenue last year from China alone. If China continues tightening restrictions, Hollywood could lose billions.
And let's not forget the EU, another huge Hollywood market, which could slap its own tariffs. The cumulative result of all these tariffs would do to Hollywood what the two World Wars did to the various film industries in Europe: devastate them. Hollywood's soft power—the very thing that makes American culture dominant—could crumble.
Think about it: China may be the world's second strongest nation, but how many anywhere migrate, or even wish to migrate to China, even as almost everyone, even the left-leaning US bashers, wants to go to the US. That's because Hollywood influences our minds. For decades, American cinema has had a profound impact on global culture. They make the U.S. look heroic, glamorous, and powerful. Hence, even though Trump is technically right in his 100% cinema tariffs, he doesn't seem to understand the trillions of dollars' worth of mindshare the American film industry buys for the US, which translates into exponentially more earnings in a host of other areas.
A global backlash is expected, not just in terms of tariffs, but in overtones of national pride. In Canada, the party that was expected to lose the election ended up winning due to Trump's bluster. Global retaliation against these cinema tariffs could have the same effect. Already the highest-grossing animated film and foreign-language film of all time, the fifth highest-grossing film of all time globally, surpassing even Titanic, is the Chinese film Ne Zha 2, mostly earned from their domestic market. Though Indian film folks have sounded the alarm over Trump's film tariffs, it could actually be a boon for us and our films might occupy screens in the future that Hollywood could be force to abandon. The biggest beneficiary would, of course, be China; its own industry could take over Asia.
Hence, that is the biggest irony of Trump's tariffs: it might actually make foreign films great again.
The Final Cut: Will This Policy Survive?
Right now, the whole affair reeks of a bad straight-to-DVD sequel—lots of noise and bluster, little substance. But will the tariffs actually be implemented? Legal challenges are already brewing. And though the Motion Picture Association (MPA) hasn't said much yet, you can be sure they're plotting their counterattack, onscreen or off it. President Trump himself appears to have softened his stance, telling reporters at the White House that he plans to "meet with the industry" to "make sure they're happy". Translation: This might just be negotiation theatre.
The bottom line? Trump's tariff is either a genius move that'll revive Hollywood if paired with tax incentives. Or it is a disastrous trade war, this time over screens, that won't just affect American cinema but also end US cultural hegemony over the world. Either way, one thing is for sure: if Trump truly wants to MAMGA: Make American Movies Great Again, perhaps he should star in one himself. Home Alone 3: Tariff Boogaloo, anyone? Chop, chop, the Razzies are waiting.