U.S. President Donald Trump urged film production at home and announced 100% tariffs on all foreign-made films entering the U.S.
U.S. President Donald Trump announced that any movie “made on foreign land” will be subject to 100% tariffs. The measure is a response to what Trump described as a coordinated attempt by foreign countries to undermine the U.S. film industry, according to an announcement made on Sunday through his Truth Society platform.
Although details on how to apply for taxation have not been disclosed, Trump said he has granted permission from the U.S. Trade Representative and the U.S. Department of Commerce to start raising tariffs immediately. The president said foreign films pose “message and publicity” and construct international competition in the film industry as a threat to national security.
“This is a unanimous effort by other countries and therefore a national security threat,” Trump wrote. “Apart from everything else, it's messaging and publicity!”
This announcement has been made amid tensions in trade practices between the United States and China. China has reduced the number of American movies allowed to enter the country after Trump announced tariffs. On April 10, the China Film Administration issued a statement condemning the US government's actions and asserting that taxes will further reduce the preference for American films among domestic audiences.
“The U.S. government's wrong actions against the abuse of Chinese tariffs will inevitably further reduce the cuteness of domestic audiences towards American films,” the statement said. “We will abide by market rules, respect audience choices, and moderately reduce the number of imported American films.”
In recent years, domestic films have surpassed China's Hollywood imports, which is the world's second largest film market import. The pandemics such as Warner Bros. Discovery, Paramount Global and Walt Disney Co., Ltd., which are still recovering together, could suffer a lot due to 100% tariffs.
Growing trade tensions have already had an impact on the U.S. film industry, and the latest tariffs will further increase pressure. The levy could change the face of international film distribution and film collaborations, which would draw attention to Hollywood Studios continuing to negotiate a more competitive global market.
Trump supporters believe his actions are crucial to protecting American work and restoring the competitiveness of the American film industry, while critics believe it can set the United States apart from the international creative market. The impact of the regulation is unclear because there is no precise time frame or information about law enforcement.
