Foreign-produced movies face potential 100% import tax, according to Donald Trump's promise.
Headline: Donald Trump Targets Foreign Films with Potential 100% Tariff
Donald Trump is turning up the heat in his trade war, aiming his latest salvo at films produced outside the US. In a showy move on his Truth Social platform, the ex-president announced he's authorized the Commerce Department and the Office of the US Trade Representative to impose a 100% tariff on any films coming from abroad.
Trump railed against the domestic film industry's struggling health and accused other countries of luring filmmakers away with hefty incentives. Labeling it a "National Security threat," Trump claimed the policy is a clever ploy for messaging and propaganda.
But it's unclear how the office would implement such a complicated tariff on international productions, many of which include elements shot both in and outside America. Big-budget films like "Mission: Impossible - The Final Reckoning" are common examples of this international production sharing.
Despite the vagueness around execution, tariffs typically aim to steer consumers toward domestic products. In movie theaters, American-produced movies already dominate, so the impact might be secondary.
Even China, known for its booming film industry, has struggled to break into the North American market. While the animated blockbuster "Ne Zha 2" raked in over $2 billion this year, most of its earnings came from mainland China, with fewer than $20 million grossed in North America.
The Motion Picture Association hasn't commented on Trump's announcement yet. Trump has a history of imposing tariffs on goods from countries worldwide, with a 145% tax on Chinese goods and a 10% base tax on goods from other nations.
Critics argue that unilaterally imposing tariffs can create political risks and erratic market fluctuations. Goods like autos, steel, aluminum, pharmaceutical drugs, and more could be subject to new tariffs in the coming weeks.
Trump has long lamented the move of filmmaking out of the U.S. Severals years ago, he appointed Mel Gibson, Jon Voight, and Sylvester Stallone as special ambassadors to Hollywood with a goal to revive the industry.
However, the current situation for the U.S. film industry is less than ideal, with setbacks from the COVID-19 pandemic, Hollywood guild strikes, and wildfires wreaking havoc. U.S. production was down 26% last year compared to 2021, according to data from ProdPro.
The top filming locations, according to an annual survey of executives, includes no U.S. location, with Toronto, the UK, Vancouver, Central Europe, and Australia emerging as top choices. California places sixth, with Georgia and New York following shortly behind.
The situation is especially dire in California, where production last year was down 5.6% from 2023, second only to 2020 during the pandemic's peak. The state recently proposed expanding its Film & Television Tax Credit program to $750 million annually from $330 million to counterbalance the trend.
Other U.S. cities like Atlanta, New York, Chicago, and San Francisco have leveraged aggressive tax incentives to lure film and TV productions. But if Trump's tariffs become reality, they could find themselves scrambling as well.
- Reporters on LinkedIn have been abuzz regarding Donald Trump's announcement to impose a 100% tariff on foreign films in 2023, a move that especially targets the finance and business sectors, and is linked to his longstanding concern about the U.S. film industry.
- The new policy-and-legislation, if implemented, could create political risks and erratic market fluctuations, as critics argue that unilaterally imposing tariffs could lead to issues not only for the general news industry but also for sectors such as autos, steel, pharmaceutical drugs, and more, which could also be subject to new tariffs in the coming weeks.
- Especially in California, where production was down 5.6% from 2023, the tariffs could pose additional challenges, forcing cities like Atlanta, New York, Chicago, and San Francisco, which have leveraged aggressive tax incentives to lure film and TV productions, to potentially scramble as well.
- The Motion Picture Association, which hasn't commented on Trump's announcement, might be especially concerned about the impact on the industry's future, considering that Trump has a history of imposing tariffs on goods from various countries, including a 145% tax on Chinese goods and a 10% base tax on goods from other nations.
- As politicians and business leaders continue to weigh in on the proposed tariffs, reporters might turn their attention to policymakers in the realm of politics, seeking insights on the potential ramifications of such a move on the industry and the overall economy.
