In the 21st-century economy, Americans are constantly navigating new ways to work, consume, and stay informed. So, when the idea of a new Trump-era tariff makes headlines, it’s not surprising that many people tune it out.
But this time, the proposed tariff isn’t aimed at steel, solar panels, or semiconductors. It’s aimed at something far more personal to the average American: Hollywood movies.
President Donald Trump has floated the idea of applying tariffs to foreign-made Hollywood films — a move he says would "bring the industry back to America." Saving the U.S. film industry may be the intent. It’s also a politically convenient headline that masks real economic consequences.
Tariffs are taxes, paid by American businesses and consumers, not foreign governments. We learned that in the first round of trade wars during Trump’s presidency.
Farmers, automakers, tech firms, and even toy manufacturers bore the brunt of these policies. The costs of everyday goods — from washing machines to groceries — rose, hitting the middle class hardest.
Now imagine extending that logic to movies. If foreign-made films are hit with tariffs, the studios and distributors will simply pass those costs along to American moviegoers. That means higher ticket prices, more expensive streaming subscriptions, and fewer choices for consumers.
Trump’s argument is that these tariffs would somehow bring Hollywood production back to the United States. But the problem isn’t that American filmmakers are choosing to shoot overseas out of disloyalty.
It’s because of the same reasons every other industry outsources cost, labor laws, taxes, and regulatory environments. Tariffs won’t change that — they’ll just make content more expensive to produce and consume.
Theaters have already struggled in the wake of the COVID-19 pandemic, with many closing permanently. Those that remain are fighting to lure audiences back.
Why now make it even harder for families to afford a night out or for consumers to access international storytelling that enriches our cultural landscape?
Moreover, targeting Hollywood with tariffs drags the U.S. into a murky cultural protectionism. It suggests the federal government should have a say not only in where and how films are made, but what content is deemed worthy of economic protection.
That’s not a precedent we want to set. At least I don’t think so.
The bigger concern here is that this new tariff threat is a symptom of a deeper economic misunderstanding. Tariffs may sound like a populist silver bullet, but in reality, they often backfire.
They are regressive, inflationary, and ineffective at achieving long-term industrial growth. When Republicans embrace tariffs without a comprehensive strategy, they abandon conservative economic principles that have long emphasized free markets and global competitiveness.
Instead of taxing our way into prosperity, we need to focus on boosting our economic fundamentals: investing in innovation, streamlining regulations, strengthening education and workforce development, and renegotiating trade deals that work for American businesses. These are the pillars of sustained economic leadership, not politically motivated taxes disguised as protectionism.
Let’s also consider the timing. The economy is already grappling with inflationary pressures, interest rate uncertainty, and a fragile recovery from pandemic-induced shocks.
Adding more tariffs — especially on something as culturally significant as film and entertainment — only adds to economic volatility and consumer frustration. When the public starts complaining about movie prices, it’s also bad politics.
From my years in Congress and experience as a businessman, I’ve seen firsthand how policy missteps can ripple across entire industries and communities. A poorly aimed tariff won’t revive American cinema. It’ll just hand American families another bill.
Ultimately, we need to ask a simple question: What are we trying to achieve with these tariffs? If the goal is to bring more movie production back to U.S. soil, there are far better tools: tax incentives for domestic production, investments in film infrastructure, and public-private partnerships that make the U.S. competitive.
If the goal is to flex political muscle, then we should be honest about the cost — and who really pays.
President Trump is known for making bold, headline-grabbing statements. Many of them make sense and are based on sound policy, even if accompanied by hyperbolic bluster.
But governing — real governing — requires more than slogans. It requires a commitment to principles, facts, and policies that improve the lives of everyday Americans.
Tariffs can have their place — in limited, strategic situations designed to counter unfair practices or protect national security. But slapping tariffs on foreign-made movies isn’t strategic, and it certainly doesn’t advance our national interests. It’s a distraction, a detour, and ultimately a dead end.
There’s a new tariff in town, and if it becomes reality, it won’t play well in Peoria — or anywhere else. Let’s not let short-term political theater replace smart economic strategy.
It’s time to call cut on this bad idea and rewrite the script with policies that actually work.
Jim Renacci was raised in a blue-collar union family, pursuing the American dream, leading to his operating over 60 businesses, creating 1,500 new jobs, and employing over 3,000 people. As a four-term conservative U.S. congressman, Jim served on the powerful U.S. House Ways and Means and Budget Committees, cutting government spending. Read More of Jim Renacci's Reports — Here.