'It makes no sense:' Industry experts blast Trump's film tariff plan

US President Donald Trump posted on Sunday that he was authorizing the process of instituting a 100 percent tariff on all movies "produced in Foreign Lands." He wrote, "The Movie Industry in America is DYING a very fast death."

The post immediately sparked controversy. Mainstream media outlets warned that the implementation of this policy would drastically increase film production costs and undermine the global competitiveness of major American studios.

CBS News correspondent Carter Evans reported widespread concern in Hollywood, calling it a "five-alarm fire," especially for low-budget and independent filmmakers. "It's going to stifle creativity… if they are forced to shoot in the US, that may change the plot line of some scripts and also [stretch] budgets even further."

CNN Business described film and streaming executives as being "downright apoplectic," because they believe the decision could decimate the industry. On Monday, shares of major entertainment companies like Netflix fell, reflecting investors' concerns about the fallout from the unpredictable policy.

The ramifications extend far beyond US borders. According to the BBC, the UK media union Bectu warned that the tariff could "deal a knock-out blow" to the industry and its tens of thousands of freelancers. Film critic Eric Deggans told the BBC that retaliatory tariffs from other countries could severely reduce overseas profits – a major concern given that about two-thirds of Hollywood's revenue comes from international box offices.

Former senior Commerce Department official William Reinsch echoed this warning: "The retaliation will kill our industry. We have a lot more to lose than to gain."

From an economic standpoint, the Hollywood Reporter pointed out that while the proposed tariffs might make it pricier to shoot abroad, they wouldn't make it any cheaper to produce films domestically.

Benjamin Swinburne, a media analyst at Morgan Stanley, warned in a note to investors that 100 percent tariffs "would lead to fewer films, more expensive films, and lower earnings for all in the business." He pointed out that films today – with writing, production, editing, post-production, visual effects – are typically made across multiple countries.

"It makes no sense," entertainment lawyer Jonathan Handel said of Trump's idea. In an interview with AFP, he questioned the feasibility of enforcing such a policy: "If the stunt is Tom Cruise climbing up the Eiffel Tower, what are we supposed to do, shoot at the replica Eiffel Tower in Las Vegas?" He added that tariffs would reduce production, increase costs, and damage distribution.

Nicholas Tabarrok, producer at Darius Films, called the move "erratic, ill-conceived and poorly considered." He commented to the Hollywood Reporter: "This is an 'everyone loses, no-one gains' policy."

As voices from across the film world condemn the proposal, it's clear that far from saving the American film industry, Trump's tariff threat could push it closer to collapse.