Trump wants to put tariffs on, um, foreign-made films?

Trump advocates 100% tariffs on foreign films for 'national security.'

: Donald Trump proposed a '100%' tariff on all films produced outside the United States, claiming it would protect America's struggling movie industry. Trump's statement called the movie industry's outsourcing a 'national security threat' and suggested that incentives from other countries are drawing filmmakers away. This initiative aligns with previous tariff schemes under his administration, raising doubts about its feasibility and legal grounds. Stock prices of major U.S. film studios, such as Netflix and Disney, dropped following the announcement.

Donald Trump announced plans to impose a '100%' tariff on all foreign-produced films entering the United States. He shared this intention on Truth Social, citing the decline in the domestic movie industry as a 'national security threat.' According to Trump, incentives from other countries lure American filmmakers away, potentially leading to a downturn in U.S.-based film production. He emphasized, 'WE WANT MOVIES MADE IN AMERICA, AGAIN!'

While Trump's rationale focuses on reviving local film production, the viability of such a tariff is questionable due to legal and practical constraints. Currently, American film studios often produce abroad to leverage tax incentives, a trend seen within the U.S. as well, where states like California, Georgia, and Illinois offer similar benefits. Despite these factors, the L.A. Times reports a 40% drop in U.S.-based film production, partly due to the 2023 writers and actors strikes.

Variety has reported that following Trump's announcement, stock prices for major U.S. studios, including Netflix, Disney, Paramount, and Warner Bros., have seen declines. This suggests market skepticism about the proposal's economic impact. Past tactics under Trump's administration have been characterized by vague, threat-based approaches aimed at negotiating better trade deals.

The full scope of the proposed tariffs remains unclear. Questions arise as to how international productions would be taxed and the impact on films currently in or finished with production processes abroad. Confusion also stems from Trump's focus solely on films without mentioning the TV industry, which similarly capitalizes on international production incentives. The proposal's ambiguity mirrors previous tariff strategies that generate uncertainty for leverage.

Responses from international film industries and nations remain unseen, but comparable recent pressures from tariffs have affected trade dynamics. For instance, last month, China announced it would limit the number of U.S. films allowed in the country as a countermeasure to U.S. tariffs on Chinese products. This ongoing back-and-forth showcases how cultural products, like films, remain entwined in global trade strategies.

Sources: Gizmodo, Variety, Los Angeles Times, Truth Social

EntertainmentMoviesIndustry