The series of tariff imposition on various industries continues as Donald Trump announces he’s considering a 100% tariffs on movies not made in the US. The President on Sunday mentioned how Hollywood is dying really fast because of the incentives producers get from other countries, and the tariffs are important for its revival. He mentioned how this is a concentrated effort from other nations and, therefore, a National Security threat. However, on Monday, he mentioned he will have a meeting with the representatives of the industry to ensure they are happy. If you are someone who wants to know more about Trump’s film tariff and its possible impact on Hollywood, this article is for you.
Trump Announces 100% Film Tariff on Truth Social
Trump announced a 100% film tariff on movies made outside the United States of America through a statement on Truth Social this Sunday. He stated that he’s going to authorize the agencies of the government that are relevant, like the Department of Commerce, to begin the process of imposing these new 100% film tariffs. Howard Lutnick, the Commerce Secretary, took over his X account and assured that the department is on it.
How Will The Trump Film Tariffs Be Imposed?
Neither the President nor the Commerce Secretary provided any further details on how exactly the tariffs would be imposed. Therefore, it is still unclear whether the tariffs will apply to movies that are released on streaming services like Netflix. We don’t have any information on whether these tariffs would be based on the production cost or the box office revenue.
Kush Desai, a spokesperson from the White House, mentioned that nothing has been finalized till now regarding the film tariffs. The Administration is currently exploring all the possible options that will safeguard the USA’s national and economic security while Making Hollywood Great Again.
Impact Of Trump’s Film Tariffs On the Global Film Industry
For years, the producers in the United States have been opting for international locations over those in Hollywood. This is because of various reasons, like high production costs and the availability of skilled production crews in locations like the UK. Timothy Richards, Vue’s founder, which is a European cinema chain, raised his voice on how Trump would ensure a movie is made in the US. He questioned whether it is the script, the money, the talent, the director, or where it was shot that determines the nationality of a movie. After the announcement of Trump’s film tariffs, leaders from various countries like Australia and New Zealand stated that they would advocate for their local industry. Bectu, which is the British media and entertainment union, also asked the UK government to act fast in safeguarding the country’s film industry.
How Will Trump’s Film Tariffs Possibly Impact Hollywood?
The share prices of major production companies of the United States, including Warner Bros Discovery, Paramount Global, and Amazon.com, traded low on Monday after the announcement of Trump’s film tariffs. Scott Roxborough, Europe bureau chief of the Hollywood Reporter, mentioned that the Tariffs won’t likely result in movie productions shifting outside or inside the country, but just fewer productions.
According to the reports, the television production in Los Angeles, the heart of Hollywood, has already witnessed a decline as low as 40% in the last ten years. Hollywood producers and labor unions are currently demanding a boost to California’s tax incentives to compete with locations like Toronto, Britain, Vancouver, Central Europe, and Australia.
William Reinsch from the Center for Strategic and International Studies explained how the retaliation because of these new tariffs on movies will kill the industry. He further added how it may be difficult to make these new tariffs a national security or national emergency case.
