Trump plans 100% tariff on foreign films, expands trade wars to entertainment sector
This move, marking the first time the US has targeted the entertainment sector in its restrictive trade actions, is designed to boost domestic film production and support American-made movies.
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US President Donald Trump announced on Sunday that he plans to impose a 100% tariff on films produced overseas, marking the first time the United States' aggressive trade policies will affect the entertainment industry, as per media reports.
In a post shared on Truth Social, Trump expressed, "WE WANT MOVIES MADE IN AMERICA, AGAIN!" directing both the U.S. Commerce Department and his trade representative to "immediately begin the process of instituting" levy of tariff on foreign films.
The specifics of how the tariff will be implemented remain unclear, particularly in terms of how films will be evaluated for tariff collection purposes. Many Hollywood productions involve international collaboration, with filming locations spread across multiple countries and post-production often taking place globally. This raises questions about how such films, often with mixed international production efforts, will be taxed.
This decision comes shortly after China's recent move to restrict the number of American films allowed in the country, a retaliatory measure against Trump's tariffs on Chinese goods.
In April, the China Film Administration announced a reduction in Hollywood films imported into the country, a policy they claimed would diminish domestic audiences' favourability towards American productions.
While the U.S. film industry remains a global powerhouse, foreign films have seen increasing popularity in recent years, with critically acclaimed works like South Korean film 'Parasite', which won four Academy Awards, including Best Picture, in 2020.
