In a fiery twist to an already heated global trade war, US President Donald Trump’s dramatic announcement of a 100% tariff on foreign-made films has sent shockwaves across the entertainment industry—and veteran filmmaker Shekhar Kapur isn’t holding back.
Taking to social media platform X (formerly Twitter), the ‘Elizabeth’ director gave a sharp and thought-provoking response.
According to Kapur, the move could unintentionally do the opposite of what Trump aims to achieve.
Over 75% of box office of Hollywood films come from outside the US. And significant part of the budget of those films are spent outside the US
President Trump’s imposition of 100% tarif on all films imported into the US may encourage Hollywood to move outside the US!
Quite the…
— Shekhar Kapur (@shekharkapur) May 5, 2025
“Over 75% of box office revenue for Hollywood films comes from outside the US. And a significant part of their budgets is spent overseas,” Shekhar Kapur wrote. “Trump’s imposition of a 100% tariff on imported films may encourage Hollywood to move operations ‘outside’ the US. Quite the opposite of what he intended.”
His statement comes in direct response to Trump’s own post on Truth Social, where the former president launched into a dramatic explanation for the new policy.
“The Movie Industry in America is DYING a very fast death,” Trump declared. “Other countries are offering all sorts of incentives to draw our filmmakers and studios away… This is a concerted effort by other Nations and, therefore, a National Security threat… I am authorizing the Department of Commerce and the United States Trade Representative to immediately begin the process of instituting a 100% tariff on any and all movies coming into our Country that are produced in Foreign Lands.”
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Trump’s remarks position the move as both an economic and cultural counterattack, aimed at reviving domestic film production and fending off what he called foreign “messaging and propaganda.”
But according to Kapur and others watching from the sidelines, this might do more harm than good. The global film business has long been a collaborative effort, with Hollywood studios increasingly filming abroad to benefit from tax breaks, cheaper labor, and diverse locations.
International box office revenue is also crucial—blockbusters now earn the majority of their income outside American theaters.
So, what happens if the US becomes more expensive and less attractive to foreign and even domestic filmmakers?
“They’ll simply pack up and go elsewhere,” say insiders, pointing to thriving hubs like Canada, the UK, New Zealand, and parts of Europe that offer generous film subsidies.
And let’s not forget the wider context. This tariff bombshell lands amid a simmering trade conflict between the US and China. Earlier in April, Beijing announced plans to dial back the number of Hollywood films allowed in its cinemas, citing the US’s ongoing tariffs on Chinese products.
So Trump’s move is as much political maneuvering as it is cultural policy.