Background on the Situation
On Monday, President Donald Trump announced that the United States will impose a 100% tariff on films produced outside of the country. Trump claims that the U.S. film industry has been “robbed” by other nations.
Global Importance of Audiovisual Services
In 2024, the United States ranked as the largest importer of audiovisual services globally, totaling $23 billion. However, specific data on foreign purchases of films produced abroad is unavailable from the U.S. Department of Commerce, and Trump did not provide details on the scope of this new measure.
Leading Exporters to the U.S. Market
Canada led exports of audiovisual services to the U.S. market in 2024, with $1.868 billion, up 23.4% from the previous year.
- South Korea: $997 million (-14.2%)
- Japan: $795 million (+10.7%)
- Ireland: $682 million (-8.5%)
- France: $682 million (+12%)
Mexico ranked tenth, with $293 million, a significant drop of 60.5% from 2023. Mexico had been increasing this indicator in the previous three years, reaching a record high in 2023.
Trump’s Targets and Rationale
Trump criticized California Governor Gavin Newsom, a vocal critic of his administration. He stated, “Our film industry has been stolen from the United States by other countries, like stealing candy from a baby. To resolve this endless and frustrating problem, I will impose a 100% tariff on all films produced outside of the United States.”
Previous Tariff Actions by Trump Administration
Since January 2025, the Trump administration has implemented additional tariffs on imports:
- Invoked the International Emergency Economic Powers Act (IEEPA) to impose a 10% tariff on most products, up to 41% on specific partners due to trade deficits and other reasons.
- Used Section 232 of the Trade Expansion Act of 1962 to impose tariffs on steel and aluminum (50%), as well as new duties on automobiles, auto parts (25%), and copper (50%) citing national security risks.
The Trump administration is investigating other sectors and may extend tariffs to these products soon.
Regional Tariff Application
U.S. customs apply tariffs of 35% to Canada and 25% to Mexico on products not complying with the USMCA due to alleged non-cooperation on fentanyl and migration; 25% on light vehicles to both countries (excluding U.S. content); and 50% on steel, aluminum, and copper to both nations.
The Trump administration is investigating semiconductors, pharmaceuticals, critical minerals, heavy-duty trucks, aircraft, drones, and polysilicon (used in solar panel and electronic microchip manufacturing).
Key Questions and Answers
- What is the 100% tariff on foreign films about? President Trump announced this tariff to protect the U.S. film industry, which he claims has been exploited by other countries.
- Which countries are major exporters of audiovisual services to the U.S.? In 2024, Canada led with $1.868 billion, followed by South Korea ($997 million), Japan ($795 million), Ireland ($682 million), and France ($682 million).
- How has Mexico’s performance changed in this sector? Mexico ranked tenth with $293 million, a substantial decrease of 60.5% from 2023. Mexico had been improving this indicator in the previous three years, achieving a record high in 2023.
- What other tariffs has the Trump administration imposed? Tariffs have been implemented on steel, aluminum, automobiles, auto parts, copper, and potential future tariffs on semiconductors, pharmaceuticals, critical minerals, heavy-duty trucks, aircraft, drones, and polysilicon.
