May 2025 – The recent announcement by U.S. President Donald Trump authorising the U.S. Department of Commerce, and the U.S. Trade Representative to immediately begin the process of instituting a 100% tariff on any and all movies produced outside the United States has the potential to shake the global film industry to its core.
It is almost reminiscent of a war movie, where a U.S. soldier—a paratrooper—misses the planned landing zone and falls into unknown territory. While the newly announced tariff appears to be part of its broader strategy to revive domestic production and the implications could be far-reaching, the actual details of the tariff in question are not yet known.
Trump's decision could have a major impact on many productions, particularly in Kinstellar jurisdictions such as the Czech Republic, Croatia, Hungary, Serbia or Slovakia. These jurisdictions are popular destinations for U.S. production companies, offering attractive incentives that help offset the costs of filming abroad. Should this tariff remain in place, it may force a dramatic shift in where and how movies are made, affecting not only the economics of film-making but also the global flow of creative talent.
However, there are still many unanswered questions about how this tariff will be implemented in practice. Will the tariff apply only to films, or will it extend to television series or other audiovisual works? What happens when a production is a collaboration between a U.S. and a foreign studio, with part of the work done abroad? The finer detail—such as whether the tariff will apply retroactively, how it will be calculated (i.e. based on production costs or box office revenue etc.), and who exactly will be charged—remains unclear. As the situation develops, this question will need to be addressed.
Given the uncertainty surrounding the practical details of the above tariff, we will continue to monitor the situation closely and provide updates as more information becomes available.
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