By: Gabriel Papadopoulos
On Monday, September 29th, President Trump doubled down on an idea he originally suggested in May to place a 100% tariff on foreign-made films to stop the American movie industry from “dying a fast death.”[1] This announcement comes as a response to an increase in American blockbuster films being shot overseas to take advantage of foreign tax credits.[2] Among recent films shot primarily or entirely overseas are some of the most anticipated upcoming movie releases, and they could be affected if tariffs were to be implemented: Wicked: For Good was shot in the United Kingdom, James Cameron’s Avatar: Fire and Ash was shot in New Zealand, and Christopher Nolan’s adaptation of Homer’s The Odyssey was shot across Greece, Italy, Morocco, and the U.K.[3] Although supporters have applauded Trump’s attempt to aid the American movie industry, critics such as California Governor Gavin Newsom believe a federal film tax credit is a better alternative.[4]
Despite the initial concern, legal experts are not so quick to sound the alarm for two main reasons: (1) A film may not constitute “goods” and thus cannot be subject to tariffs, and (2) most films are now shot digitally, making it very impractical to impose tariffs without legislation to encompass digital transfers.[5] One major obstacle in President Trump’s way may be the International Emergency Economic Powers Act (“IEEPA”) — the same act the President used to introduce sweeping tariffs on April 2, 2025, which he proclaimed “Liberation Day.”[6] The IEEPA’s Bearman Amendment — which Congress originally enacted due to concerns of government censorship during the Cold War — specifically does not grant the President the authority to ban or regulate the importation of films and other media.”[7]
Even if most films may be able to escape tariffs through digital transfer, special format films could still be at risk. Christopher Nolan’s The Odyssey, set to release in July 2026, is the first film to be shot entirely using an IMAX film camera.[8] Using this type of camera allows for an expanded aspect ratio, as well as enhanced visuals, but when Nolan’s Oppenheimer was released in 2023, there were only 30 theaters in the world capable of showing the coveted IMAX 70 mm format.[9] Unlike digital transfer, these film reels are tangible and may have to be imported into the United States. In fact, the U.S. Harmonized Tariff Schedule (H.T.S.), which is used to classify imported goods, already has a code to describe this very item.[10] H.T.S. Code 3706.10 is used for “Motion-picture film, exposed and developed, whether or not incorporating sound track or consisting only of sound track: Of a width of 35 mm or more.”[11] While foreign movies shot on film may be captured under this code, Trump’s proposal still does not make clear how the tariffs would apply. For instance, how can U.S. Customs agents assign a value to a film that hasn’t been released yet? To be remotely workable, the Trump administration would have to broadly redefine foreign films as importable goods and place a tax at the point of sale.[12] This would require even further guidance on what exactly makes a film “foreign made” as the film production commonly takes place in multiple locations.[13]
Regardless of whether these proposed tariffs do go into effect, the mere uncertainty they have caused is likely to raise box office prices for consumers.[14] Added costs will not only hurt movie-goers, but the movie theater industry as well. As of 2024, movie theater ticket prices had climbed over 68% in the past twenty years; meanwhile, attendance nationwide was estimated to be down 38% compared to pre-pandemic numbers.[15] Moviegoers should expect prices to continue to rise, while the film industry should continue to monitor the situation and wait for a more in-depth proposal if the Trump administration plans to follow through on tariffing foreign films.
[1] Mason Leib, Trump Threatens Tariffs on Foreign Films: What to Know, ABC News (Oct. 1, 2025, 10:42 ET), https://abcnews.go.com/GMA/Culture/trump-threatens-tariffs-foreign-films/story?id=126076400 [https://perma.cc/SG29-D7FQ].
[2] See Lyvie Scott, These 10 Upcoming Hollywood Blockbusters Could be in Danger from Trump’s Tariffs, Inverse (May 7, 2025), https://www.inverse.com/entertainment/10-most-anticipated-movies-shot-outside-of-the-us [https://perma.cc/4TF7-ZRS6].
[3] Id.
[4] See Judy Kurtz, Trump Doubles Down on Film Tariffs that Experts Call “Impossible”, The Hill (Sep. 30, 2025, 16:49 ET), https://thehill.com/blogs/in-the-know/5528987-trump-foreign-film-tariffs-hollywood-newsom/ [https://perma.cc/QCR4-Q87T] (highlighting that Governor Newsom’s office called Trump’s film tariff proposal “100 percent stupid” and stated the tariffs would cause “irreparable damage to the U.S. film industry”).
[5] See id.
[6] Alison Durkee, Trump Wants to Tariff Foreign Movies—Is that Legal? What to Know, Forbes (Sep. 30, 2025, 09:12 ET), https://www.forbes.com/sites/alisondurkee/2025/09/30/trump-wants-to-tariff-foreign-movies-is-that-legal-what-to-know/ [https://perma.cc/ZAM5-QJSD].
[7] Id.; see 50 U.S.C. § 1702(b)(3) (asserting that the President is prohibited from banning or regulating “the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds”).
[8] Scott Roxborough, Christopher Nolan’s ‘Odyssey’ Will Be the First Blockbuster Shot Entirely on Imax Film Cameras, Hollywood Rep. (May 15, 2025, 07:11 ET), https://www.hollywoodreporter.com/movies/movie-news/nolan-odyssey-first-blockbuster-to-only-use-imax-cameras-1236217925/ [https://perma.cc/UB5T-Q9QZ].
[9] See Jason Guerrasio, Only 30 Theaters in the World are Showing ‘Oppenheimer’ in Imax 70 mm, the Way Christopher Nolan Intended People to See It — Here They All Are, Bus. Insider (July 27, 2023, 11:17 ET), https://www.businessinsider.com/theaters-where-you-can-see-oppenheimer-in-imax-70mm-2023-7 (on file with the American University Business Law Review).
[10] Harmonized Tariff Sched. (2025).
[11] Id. at 3706.10.
[12] Morgan Coleman, What Trump’s Proposed 100% Tariff on Foreign-Made Films Might Mean for Hollywood and Tax Compliance, Avalara (July 10, 2025), https://www.avalara.com/blog/en/north-america/2025/07/tariff-on-foreign-made-films.html [https://perma.cc/GNJ9-B7U8].
[13] See id.
[14] Akash Sriram & Harshita Mary Varghese, Trump Says US to Impose 100% Tariff on Movies Made Outside the Country, Reuters (Sep. 30, 2025, 04:54 ET), https://www.reuters.com/business/media-telecom/us-impose-100-tariff-movies-made-outside-country-2025-09-29/ (on file with the American University Business Law Review).
[15] Avery Koontz, Increasing Movie-Ticket Prices: Why They are Rising and How They Affect Moviegoers, Medium (Dec. 21, 2024), https://medium.com/jms-reports/increasing-movie-ticket-prices-why-they-are-rising-and-how-they-affect-moviegoers-506c0e631c51 [https://perma.cc/YVZ2-7BVT].
