Hollywood is under mounting pressure as a trade war escalates between the US and China. Recently, China cut down its quota for American films, further straining the industry.

In a new twist, US President Donald Trump announced a 100% tariff on all foreign-produced movies, claiming that Hollywood is being hollowed out as other countries lure away American filmmakers with incentives.

He declared this situation a "National Security Threat" and has instructed the Department of Commerce and the U.S. Trade Representative to implement the tariffs immediately, although no specifics were provided.

This move intensifies existing tensions, especially as China remains the second-largest film market globally. The Chinese Film Administration recently stated that American films would face declining audience approval in China due to U.S. trade policies.

Major studios like Disney, Paramount, and Warner Bros. are likely to be impacted if a full-blown film tariff war unfolds.

Previously, Trump introduced global tariffs ranging from 10% to 50%, which were temporarily paused for 90 days, except for a steep 125% tariff on Chinese goods that still remains in effect.