Trump to impose 100% tariff on Nollywood and other foreign movies

United States President Donald Trump has revealed plans to impose a 100 per cent tariff on Nollywood and other foreign films. In a post on Sunday, Trump noted that he had directed the US Department of Commerce and the US Trade Representative to commence the process of imposing the tariff on all films produced in “foreign lands.”

According to the US President, the move is the latest attempt to rescue the country’s film industry, Hollywood. He claimed that Hollywood is undergoing a “very fast death” due to overseas competition, where other countries are exploring strategic impetus to control the filmmaking industry, thereby reducing Hollywood’s popularity.

“Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!” Trump said on his Truth Social platform.

He expressed further that the US has been making very few movies recently and claimed that other nations have stolen the Hollywood movie industry. While offering a way out for foreign movies to escape the potential tariff, the US President said: “If they are not willing to make a movie inside the United States, we should have a tariff on movies that come in.”

Another twist to the plot is whether this would be applied to Hollywood features that involve shooting and production across multiple countries. However, Trump did not elaborate on how such a tariff would work.

Also Read: Trump excludes smartphones, computers, chips and other gadgets from 10% tariff. 

Previous attempt by Trump to rejuvenate Hollywood’s glory

Trump’s tariff announcement follows his appointment in January of actors Sylvester Stallone, Mel Gibson, and Jon Voight as special ambassadors. They were tasked with bringing back business that Hollywood has lost to other countries. At that time, Trump said the actors would be “my eyes and ears” as he set about instituting a “Golden Age of Hollywood”.

The industry has faced tough business conditions in recent years amid the fallout of the COVID-19 pandemic and the 2023 actors’ and writers’ strike. Also, Hollywood studios grossed about $30bn worldwide last year, a 7 per cent reduction from 2023, according to Gower Street Analytics. Although last year’s performance was an improvement on revenues in 2020, 2021, and 2022, it was still about 20 per cent below the pre-pandemic average.

Trump’s latest tariff threat looks set to raise further tensions in the U.S. relations with other countries, which are already grappling with a suite of duties on sectors ranging from steel to cars.

What does the tariff mean for Nollywood and others?

For Nollywood and other movie industries outside the United States, the tariff poses a threat as it aims to reduce their presence in the U.S. market, where Hollywood is battling for survival.

If Trump were to impose a 100 per cent tariff on Nollywood and other foreign movies, it would significantly impact the Nigerian film industry. A 100 per cent tariff would significantly double the cost of Nollywood movies for American distributors and consumers, resulting in reduced demand and challenging for Nollywood filmmakers to access the US market.

Also, the tariff could affect collaborations between Nigerian filmmakers and U.S. producers, which can limit opportunities for global partnerships. Nollywood and other foreign movie industries would face strong pressure to adapt. To mitigate the pressure, they will explore alternative markets, negotiate with distributors, or advocate for policy changes to address the impact of the tariff. 

On the Nigerian scene, Nollywood will look to rescue its growing market value, which has been contributing substantially to Nigeria’s economy. In 2024, it generated over N3.5 billion in domestic revenue and was projected to reach between N11 billion and N12 billion. The industry’s revenue is expected to reach $65.65 million in 2025, with a projected market volume of $80.20 million by 2029