President Donald Trump announced on Sunday through his Truth Social platform that he plans to impose a 100% tariff on all movies produced outside the United States, marking his second such declaration within five months. The statement came without providing any specific implementation timeline or enforcement mechanism, leaving industry experts puzzled about how such a policy would actually work.
Trump claimed, without offering evidence, that foreign countries are "stealing" American film production through tax incentives, specifically citing California as being "particularly hard hit." The announcement raised more questions than it answered, as it remains unclear how authorities would apply tariffs to intellectual property rather than physical goods, or whether the policy would cover streaming content alongside theatrical releases. Trump's statement also failed to define what exactly constitutes a foreign-made film.
In Seoul's entertainment districts, where production companies have built global franchises from Korean TV dramas and films, the response has been notably measured. Movie studio and streaming executives who spoke with reporters expressed confusion but little concern about the threat. Most said they would wait for concrete details before taking any action regarding their business operations.
"We haven't felt any real change between May and now," said an executive at a major Korean entertainment company, speaking anonymously and referring to Trump's first tariff threat on foreign-made films. "Until we see actual implementation and detailed guidelines, we're viewing this similarly to the previous announcement." The numbers may help explain this calm reaction - Korea's film industry has minimal exposure to the U.S. market.
According to Korean Film Council data, total revenue from Korean films reached approximately 1.4 trillion won ($1.05 billion) in 2024, but overseas exports account for just 4% of that figure at 57.1 billion won. U.S. exports make up only a tenth of those overseas sales, representing a tiny fraction of Korea's overall film revenue. Few Korean films target the American market directly, with recent English-language productions shot in Korea including "The Hole," starring Theo James and Hoyeon, and "Pig Village," featuring Don Lee (known locally as Ma Dong-seok).
An official at a local production company noted that Korean films primarily generate revenue domestically. "If this were seriously affecting our overseas sales or support systems, we would expect government agencies to initiate industry consultations," the official said, requesting anonymity. "That hasn't occurred." An industry executive who produces content for both Korean and American markets offered a more direct assessment: "Korean movies don't travel outside their intended domestic audience. A 100% tariff may mean a few million dollars less. It's not a big industry."
The executive, who regularly works between Seoul and Los Angeles, said American colleagues aren't taking the threat seriously either. "My Korean counterparts tend to take Trump's proclamations more seriously. They ask what's really happening. I tell them it's just noise - don't take it seriously." This sentiment reflects the broader skepticism within the industry about whether Trump's social media announcements will translate into actual policy.
While theatrical releases from Korea rarely reach American screens, Korean productions on global streaming platforms have been hitting U.S. markets in increasing numbers. Trump's proposed 100% tariffs on foreign-made films could potentially spell trouble for streaming services producing original content worldwide. Netflix's latest Korean action thriller "Mantis," which debuted on the platform Friday, quickly climbed into the U.S. top 10, joining a growing roster of original productions finding American audiences through streaming.
However, industry experts question whether tariffs can even apply to content that doesn't physically cross borders. Unlike cars or steel, films on streaming platforms are services uploaded digitally, not tangible goods shipped in containers. This uncertainty led stocks for streaming companies including Netflix and Disney to dip briefly Monday morning before bouncing back, as investors and industry insiders alike remain in wait-and-see mode.
An official at a global streaming platform operating in Korea highlighted the complexity of the matter: "Content production isn't like manufacturing where you can easily determine country of origin. If the production company is American but filming happens abroad, what makes it foreign? These are complicated issues that can't be clearly defined." The official questioned whether companies should change their entire strategy based on "one tweet," suggesting this appears more like political messaging than actual policy.
Beneath the surface calm is an acknowledgment that Trump's threat, if ever implemented, could disrupt a growing sector of Korea's entertainment economy: location services for international productions. In recent years, Korea has transformed itself into an attractive filming destination for Hollywood, with Seoul's streets doubling for futuristic cityscapes and its countryside standing in for various Asian locales. Korean film crews have earned reputations for efficiency and technical excellence.
Netflix's teen romance "XO, Kitty" filmed both its seasons entirely in Korea, transforming Seoul's trendy Seongsu-dong district and Han River parks into backdrops for American storytelling. "The Recruit" brought its spy thriller action to Seoul's gleaming skyscrapers and traditional markets, while Marvel's "Black Panther" used Busan's Gwangan Bridge as the setting for a spectacular chase sequence that audiences worldwide remember.
Korea offers foreign productions cash rebates of 20 to 30% on local spending, though caps may range from 200 million to 400 million won per project. That's modest compared to major filming hubs like the UK, Canada, and Australia, which offer rebates up to 40% or more with much larger budget limits. Japan recently entered the competition with rebates up to 1 billion yen ($6.75 million) per project. Despite this competition, Seoul received 632 applications from international productions in 2022, providing subsidies to 268 projects, according to city government data.
"If these tariffs specifically target American productions filmed abroad, that could affect our production service companies," said a senior official at the Korean Film Council, the government body under the Culture Ministry that oversees the country's film industry. "But we're still operating under the assumption that this is more political messaging than actual policy." The official noted that even after May's threat, American productions continued to move forward, with Paramount currently filming a K-pop-themed movie in Korea and repeatedly inquiring about location incentive budgets for next year.
Hwang Seon-kwon, whose company Nine Tailed Fox has facilitated major Hollywood shoots including "Avengers: Age of Ultron" and "Black Panther," has perhaps the best ground-level view of the situation. On Tuesday, while managing a multinational production, Hwang took a brief call about Trump's announcement. "Nobody here is talking about tariffs," he said, with film set noise audible in the background. "They're talking about tomorrow's call time."
Hwang posed the question troubling trade experts: "How do you put a tariff on a movie? With American financing, British actors, Korean crew, and Canadian post-production, what exactly are you taxing?" He noted that Trump makes many announcements on social media platforms, with some becoming policy while most don't. "Until we see actual legislation with real details, we're continuing business as usual," Hwang concluded, reflecting the pragmatic approach taken by much of Korea's entertainment industry.
