President Donald Trump announced Monday on Truth Social that his administration will impose a 100% tariff on all foreign-made movies, a move that stunned Hollywood and the broader entertainment industry. If enacted, this would mark the first time a U.S. president has attempted to levy tariffs on a service rather than a physical good.

The announcement revives a threat first floated in May, when Trump argued that foreign governments use tax incentives to lure filmmakers abroad, undercutting U.S.-based production. He singled out California, claiming the state had been “particularly hard hit” by outsourcing, despite the fact that the state itself has rolled out substantial tax credits in recent years.

Studios often choose international locations because of lower labor costs and attractive re

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