Hollywood Doesn't Need Tariffs. It Needs Investment

Newsweek

14-05-2025

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Recently, the Trump administration proposed a dramatic shift in U.S. trade policy: a 100 percent tariff on foreign-made films. On the surface, this might seem like a bold move to "bring Hollywood home"; a way to protect domestic productions, create more career opportunities within the United Statesw, and reclaim America's cultural dominance. But let's be clear: these tariffs won't revive the film industry. they'll hasten its downfall.
Let's be real—Hollywood isn't just an American enterprise anymore. It hasn't been for a long time. It's an intricate, interdependent ecosystem that thrives on global exchange—financially, creatively, and logistically.
Studios routinely shoot in Eastern Europe for its architectural authenticity, in Canada and Australia for tax incentives, and in Asia for breathtaking visuals and growing audiences. Even the most American of films, like Marvel's Thunderbolts, lean heavily on this international model. The film's adrenaline-pumping opening, featuring Florence Pugh's Yelena Belova leaping from Kuala Lumpur's Merdeka 118, wouldn't have had the same impact if shot in Burbank, California.
The Hollywood sign on Mount Lee, in Los Angeles, California.
The Hollywood sign on Mount Lee, in Los Angeles, California.And we're seeing that global conversation play out in real time. This year's Cannes Film Festival will host a trio of highly anticipated premieres: The Phoenician Scheme, Eddington, and Highest to Lowest, Spike Lee's new film inspired by Kurosawa's 1963 classic High and Low. These aren't just overseas debuts, they're signals that film is thriving in conversation with the world. American stories are richer because they're in dialogue with other cultures—borrowing, adapting, and evolving.
That's what tariffs threaten to unravel.
Contrary to the administration's claims, Hollywood is one of the few American industries that has a trade surplus. In 2023, the U.S. earned more than $22.6 billion in film and television exports, with a trade surplus of $15.3 billion. This is art and business tied together. Hollywood's export success has been built on its global reach, with American films appealing to audiences everywhere. If these tariffs go into effect, countries may retaliate, slapping similar duties on American exports. That puts foreign markets, many of which are lifelines for Hollywood, at serious risk.
A 100 percent tax on foreign-made films wouldn't just be economically shortsighted—it would undercut the very collaborative spirit that's kept Hollywood relevant. Film festivals like those at Cannes, Venice, and Toronto don't just celebrate global cinema; they launch careers, secure distribution deals, and shape award seasons. They're essential platforms, not luxury stops. Kill the pipeline to those stages, and you silence the voices that are reshaping the very definition of Hollywood.
That goes for blockbusters too. Take Mission: Impossible – The Final Reckoning, a franchise that has consistently relied on overseas shoots and international markets to fuel its high-octane appeal. These are films made with—and for—the world. Without that global reach, the stakes change. The box office shrinks. The magic wanes.
And it's not just the big-budget productions that stand to lose. Independent cinema—arguably the heart of artistic risk and innovation, would be devastated. A 100 percent tariff on foreign-made films would be an existential threat to indie filmmaking, far more damaging than to Hollywood's giants. Indie filmmakers often operate on razor-thin margins, relying on international shoots, co-productions, and foreign investors to make their visions real. These tariffs would effectively double their budgets, severing access to crucial funding from abroad and limiting U.S. distribution for foreign partners. That doesn't just inflate costs—it chokes off diverse, cross-cultural storytelling at the root.
International films shaped my own love of cinema. Pan's Labyrinth and Crouching Tiger, Hidden Dragon opened my mind, as they did for many Americans, to fresh stories that explore different cultures, aesthetics, and human truths. That kind of exposure doesn't just inspire future filmmakers; it fosters empathy and curiosity, which are vital to both personal growth and the shared human experience. If this tariff goes through, it could close that window for the next generation of storytellers.
It's important to remember that the reason so many productions go overseas isn't because Hollywood is broken, it's because other countries offer meaningful incentives. Tax breaks, streamlined permitting, and co-production deals make it feasible to dream bigger, stretch budgets, and take creative risks. If we want to bring production back to American soil, that's the blueprint, not punitive tariffs, but proactive investment.
Let's talk economics. In 2024 alone, Hollywood lost nearly 15,000 jobs. Average payrolls in the motion picture industry are still down nearly 25 percent compared to pre-pandemic levels. The aftershocks of the 2023 strikes are still being felt. Adding tariffs on top of that? It would be like dousing the flames that are left.
If the goal is to rejuvenate American filmmaking, there's a better way forward. Expand tax credits in states that are hungry for production. Invest in infrastructure that supports post-production and visual effects. Fund programs that empower new voices—especially from underrepresented communities—to tell stories that matter. Give crews stability and ensure that working in Hollywood doesn't mean working to the brink of burnout.
In short: build the industry and incentivize it.
Felipe Patterson is a freelance writer and entertainment journalist who has written for Watercooler HQ, Taji Mag, GQ South Africa and other outlets. He writes about film, television, and culture.
The views expressed in this article are the writer's own.