In a move to protect the US film industry, President Donald Trump announced plans to impose a 100% tariff on movies produced abroad and imported into the United States.
Trump took to his Truth Social platform to express his concerns, stating that the American movie industry is “DYING a very fast death” due to foreign incentives luring filmmakers away from the US.
Trump’s Argument
Trump claims that this trend poses a national security threat, devastating Hollywood and other areas within the country. To counter this, he’s authorizing the Department of Commerce and the United States Trade Representative to begin the process of instituting the tariffs.
Impact on the Film Industry
The proposed tariffs aim to bring movie production back to America, but it’s unclear how this would affect Hollywood studios. Location shooting has increasingly moved abroad due to lower production costs and tax incentives. In response, California Governor Gavin Newsom proposed a significant investment to offer competitive tax credits and attract more film projects to the state.
Trump’s Trade Policy
This move is part of Trump’s broader protectionist push, imposing high import tariffs to boost domestic production. His tariffs have sparked global concern, driving countries to reassess their relations with Washington.
International Reaction
Interestingly, Europe has announced it won’t impose counter-tariffs on Hollywood films, despite Trump’s plans. This development comes as Trump navigates complex trade negotiations with various countries, including China, Canada, and Mexico.
