Timothy Gocklin, MBA, MSF
Editor-in-Chief | TerreneGlobe.com
Cinema United CEO Backs Trump’s Film Tariff: A Watershed Moment for American Cinema
In a landslide endorsement rocking Hollywood, Michael O’Leary, the CEO of Cinema United, praised President Donald Trump for proposing a 100% tariff on foreign-made films. Cinema United members represent more than 31,000 movie screens in all 50 states and comprise the largest exhibition trade group in the world. O’Leary’s statement is potentially a milestone moment in American film’s response to globalization, domestic jobs, and quality.
A “Main Street” Industry, Not Hollywood Alone
Addressing the annual CinemaCon in Las Vegas, O’Leary explained to TheWrap how theatrical presentation is not an industry based solely in Hollywood—it’s a Main Street industry rooted in American cities and towns.
“We are encouraged by recent efforts to promote the American filmed entertainment industry,” he said, adding that new endeavors like the tariff could help theaters build “the great houses of the future movies.“
Cinema United has pledged to work with the White House, Congress, and other stakeholders to keep local theaters a strong economic and cultural presence.
“It is essential to understand that theatrical exhibition is not an industry of Hollywood, but a Main Street industry.” — Michael O’Leary, Cinema United
Trump’s Tariff Proposal: What’s Behind It?
President Trump’s suggestion that all foreign-produced films be subject to a 100% tariff comes in response to what he sees as the “speedy death” of America’s movie industry. Productions have been fleeing California due to exorbitant taxes, regulations, and foreign subsidies.
Australia, Hungary, Ireland, and New Zealand are pirating productions, making sweeter offers with fewer strings attached.
Trump contends that not only does this undermine the U.S. economy, but it also risks cultural control, where foreign governments gain influence over entertainment content by leveraging finances and geography.
Industry Unions Praise the Initiative
The Teamsters union and IATSE (International Alliance of Theatrical Stage Employees) have aligned with Cinema United in praising Trump’s initiative.
Teamsters President Sean O’Brien denounced Hollywood’s practice of outsourcing, declaring the industry’s “addiction” to foreign labor to be un-American.
IATSE echoed similar fears, pointing to the tens of thousands of jobs lost as studios shoot abroad in hopes of saving money.
“We need an even-handed federal response to bring back jobs,” said the union in a public statement.
“Tariffs are a bitter pill for Hollywood, but they’re the medicine that the American film industry needs.” — IATSE Statement
Not Everyone’s Applauding
Global critics have raised eyebrows, calling the tariff unrealistic for a business that is inherently global. Contemporary films are often co-produced, co-financed, and shot in several countries, so it’s hard to apply neat “domestic vs. foreign” labels to them.
Still, the tariff controversy has highlighted a major trend: American films no longer necessarily need to be made in America—or even by Americans.
Are Movies Getting Worse?
A lot of Americans have felt it for years: movies just aren’t as good as they once were. Now the numbers are confirming that intuition.
Rotten Tomatoes Scores Are Dropping
According to a 2024 Rotten Tomatoes industry report, the critical average score for American wide-release studio films fell from 68% in 2015 to 54% in 2023. Audience scores, generally far removed from critics, fell too—from 72% to 60% during the same interval.
The prime suspects? A deluge of remakes, sequels, and franchise spin-offs more concerned with profit than originality.
Box Office Doesn’t Equal Quality
Although some mega-blockbusters continue to make money, they tend to underperform critically. In 2023, nine out of the top ten highest-grossing movies were sequels or franchise entries, but only two of them received more than 75% on Rotten Tomatoes.
Oversupply is fueled by streaming services. Netflix, Disney+, and Amazon are churning out original content at a pace never seen before. But quality hasn’t followed quantity—Netflix’s average movie rating dropped from 65% in 2018 to 48% in 2023, according to data from ScreenRant.
More Money, Less Substance
Modern-day films have oversized budgets, with advertising and VFX costs exceeding $200 million in some cases. Yet most such films have thin plots and unimaginative storylines.
The 2024 box office bomb The Marvels, for example, cost $220 million but barely broke even globally, garnering just 62% audience satisfaction on Cinemascore.
Audiences Yearn for Authenticity
Increasingly, audiences are seeking out foreign or independent films that deliver what Hollywood all too often cannot: genuine storytelling, character depth, and emotional connection.
Films like Parasite and Everything Everywhere All at Once were cultural touchstones because they broke the mold—not because they fit into it.
The Bottom Line
If America is to revive its film industry, it must not only look at where films are made, but also at how well they are made. Trump’s tariff is a start in the direction of protecting domestic production—but long-term success will depend on a commitment to creative quality, not just economic reform.
Final Thoughts
The joint might between President Trump, Cinema United, and the big film unions signals a brighter future for American films. With thousands of jobs lost, declining picture quality, and runaway productions, the industry stands at a critical juncture.
A foreign film tariff would encourage studios to reinvest in American talent, refurbish studio facilities, and restore consumer confidence in the theatrical experience.
And with champions like Michael O’Leary pushing policy changes that reach beyond Hollywood’s elite, the American film industry may well have a shot at an actual comeback.