Have you heard about the proposed 100% tariff on foreign films? Yep, you read that right—100%.

While it might sound like an effort to protect American filmmakers, this move could have some pretty serious consequences for the U.S. movie industry, which is already dealing with a lot of challenges. In short, this tariff could raise costs for distributors, make it harder for streaming services to offer a variety of content, and disrupt the global network that keeps the film world fresh and innovative. But there’s a better way to go about it—funding U.S. film production through incentives and grants, rather than penalizing the international film community.

What’s the Deal with This Tariff?

Here’s the gist: the idea behind a 100% tariff on foreign films is that it’ll help protect U.S. filmmakers from the increasing influx of foreign movies and shows. Sounds simple enough, right? But here’s the problem: foreign films are a huge part of what makes streaming platforms like Netflix, Amazon Prime, and Hulu so appealing. These services offer a ton of international content that U.S. audiences love—whether it’s a Spanish drama, a South Korean thriller, or a French rom-com.

With this tariff, the cost of acquiring foreign films would go way up, and guess what? Either subscription prices would have to rise, or streaming services might cut back on foreign content altogether. That means fewer options for viewers, which would be a big bummer for those of us who enjoy discovering films from different cultures.

Why It Could Hurt the U.S. Film Industry

It’s not just about what’s available on your streaming service, though. The reality is that the U.S. film industry is deeply intertwined with international film markets. Many Hollywood movies are co-productions with foreign studios. This allows filmmakers to tap into a broader pool of talent, locations, and resources. Without the freedom to collaborate internationally, U.S. filmmakers could find themselves stuck working within a limited bubble, which isn’t great for creativity or innovation.

And let’s not forget about independent filmmakers. Independent films often depend on international distribution to secure financing and find global audiences. A 100% tariff could seriously hurt their ability to distribute their films abroad. It’s already tough enough for indie filmmakers to compete with the big studios. A tariff like this could limit their ability to make their voices heard on the global stage.

What About U.S. Streaming Services?

Streaming services in the U.S. have been great at bringing foreign films to American audiences. Think about it: Parasite was a massive hit in the U.S. and took home multiple Oscars. Shows like Money Heist from Spain and Squid Game from South Korea are all the rage. A lot of people discovered these films and shows through platforms like Netflix, which is why they’ve become so globally popular.

But with a tariff, streaming services could face major challenges. They’d have to pay more for foreign content or just cut it out altogether. With streaming becoming more competitive, the loss of international films could hurt their bottom line and alienate a lot of viewers who enjoy diverse content. No one wants to pay for a subscription and be stuck with just Hollywood blockbusters. Variety is the spice of life, right?

Why Tariffs Are the Wrong Approach

So, what’s the alternative? Instead of slapping tariffs on foreign films, why not focus on funding U.S. film production in a way that actually encourages more films to be made here—while still embracing global collaboration? Countries around the world have done this successfully, and the U.S. could definitely follow their lead.

1. Canada’s Film Tax Incentives

Canada has been killing it with its film tax incentives. The Canadian government offers generous tax credits to both domestic and foreign filmmakers who choose to shoot in the country. These tax breaks can cover up to 40% of production costs, which has made Canada a major hub for film production. Hollywood studios regularly shoot in Canada because it’s cost-effective and offers world-class production facilities. (It’s no wonder that New York scenes are usually filmed in Toronto.) The U.S. could implement similar incentives to attract more filming back to the States—without needing to isolate itself from international talent.

2. The UK’s Film Tax Relief

The UK has a fantastic system that incentivizes filmmakers to shoot in the country. The British Film Institute (BFI) offers tax relief of up to 25% on qualifying productions, making it a go-to destination for international filmmakers. This program has attracted everything from huge blockbusters to indie films, creating a thriving film ecosystem that benefits everyone involved. The U.S. could easily take a page from the UK’s playbook, giving filmmakers the support they need to stay competitive on a global scale.

3. Australia’s Incentives for Filmmakers

Australia is another country that knows how to incentivize film production. The government offers grants, rebates, and location incentives to filmmakers who shoot in Australia. This has made the country a popular choice for international co-productions. Plus, it’s a great way to ensure that local filmmakers have access to the resources they need to thrive. Imagine if the U.S. put a similar focus on tax breaks and incentives, attracting global filmmakers and growing the local industry at the same time.

Does the U.S. Offer Any Film Grants or Incentives?

While the U.S. doesn’t offer nationwide tax incentives like Canada or the UK, there are still some funding opportunities available for U.S.-made films. These programs may not be as extensive, but they do help filmmakers get their projects off the ground.

Federal Grants for Film and Media Projects

The federal government offers grants through various agencies to support media and film projects, though these grants are usually focused on artistic or educational works rather than large commercial productions. For example:

• National Endowment for the Arts (NEA): Traditionally, the NEA provides grants to filmmakers, especially those creating independent or artistic films.
• National Endowment for the Humanities (NEH): Traditionally, the NEH offers funding for documentaries and other films focusing on history, philosophy, and culture.

State-Level Film Incentives

Many states in the U.S. offer tax credits or rebates to encourage filmmakers to shoot their movies in-state. Some states that offer competitive incentives include:

• California Film Tax Credit Program
• New York Film Tax Credit
• Georgia Film Tax Credit
• Michigan Film Tax Incentive
  These state-level credits can cover significant portions of production costs, making it more affordable for filmmakers to choose the U.S. over filming abroad.

The American Film Institute (AFI)

While AFI doesn’t provide direct tax credits, it does offer scholarships, grants, and support to emerging filmmakers. The AFI Conservatory, for example, helps students and alumni develop their films with resources and industry connections.

Independent Film Grants

There are also several private organizations that offer grants for independent filmmakers. Notable examples include the Sundance Institute Grants and the Tribeca Film Institute. These programs help support indie filmmakers by providing funding, mentorship, and access to festivals.

The Bottom Line: Let’s Invest in U.S. Film, Not Isolate It

The 100% tariff on foreign films might sound like a way to protect U.S. filmmakers, but in reality, it could harm the very industry it aims to support. Instead of penalizing foreign films, the U.S. should focus on building a more robust domestic film ecosystem. By offering tax incentives, grants, and other funding options, the U.S. can attract more filmmakers to shoot movies here while still encouraging international collaborations.

The movie industry thrives when there’s a free flow of ideas, talent, and resources across borders. Tariffs only create barriers that limit creativity and diversity. Let’s invest in U.S. filmmaking and create an environment where domestic and international talent can thrive together. The future of the U.S. film industry lies not in isolation, but in collaboration—and the best way forward is to make the U.S. a place where films are made, celebrated, and shared with the world.

What do you think—do tariffs sound like a good way to protect the industry, or should we be focusing on funding and incentives instead?