Trump Plans 100% Tariff on Foreign Movies, Escalating Trade War
President Donald Trump announced Sunday that he plans to impose a 100% tariff on films produced overseas, extending his restrictive trade policies on US imports to the entertainment sector for the first time.
In a post on Truth Social, the American leader said he was directing the Commerce Department and his trade representative to “immediately begin the process of instituting” the levy on foreign movies. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump continued.
It’s not clear how such a tariff would work, nor how such works would be valued for tariff collection purposes. Many films from Hollywood studios involve global production, including shooting locations in foreign countries and post-production work that can be done anywhere in the world.
The action, however, follows move by China last month to “moderately reduce” the number of Hollywood films allowed in the country in retaliation for Trump’s aggressive tariffs on the US rival. The China Film Administration said in April that the restrictions would “inevitably further reduce the domestic audience’s favorability toward American films.”
While the US film industry is the most influential in the world, foreign films have seen a rise in popularity in recent years, drawing award-winning acclaim. The South-Korean thriller Parasite, for instance, won four Academy Awards, including the coveted Best Picture category in 2020.
Source : Bloomberg
