Today, President Donald Trump launched a new salvo in his tariff war by imposing a 100% levy on films produced outside of the United States, including those produced in Britain.
Mr. Trump has granted the Department of Commerce and the Office of the US Trade Representative the authority to impose a 100% tariff on “any and all movies that are produced in foreign countries” that are imported into the United States.
Last night, he posted on his Truth Social platform that the movie industry in the United States is rapidly dying. He expressed his dissatisfaction with the fact that other countries are providing a variety of incentives to attract filmmakers and studios away from the United States.
This is a national security threat, as it is a concerted endeavor by other nations. It is, in addition to all other things, propaganda and messaging.
It was not readily apparent how such a tariff on international productions could be implemented. It is not uncommon for both large and minor films to involve production in both the United States and other countries.
For example, the upcoming Mission: Impossible – The Final Reckoning is a high-budget film that is filmed worldwide. The production, which featured Tom Cruise, was shot in Malta, South Africa, Norway, and Britain.
Film production has been increasingly displaced from California to other states and countries with favorable tax incentives, such as Canada and the UK, as a result of incentive programs that have influenced the location of film shoots for years.
However, tariffs are intended to encourage consumers to purchase American products, and American-produced films currently dominate the domestic market.
The animated blockbuster Ne Zha 2 has grossed over $2 billion (£1.5 billion) this year, as China has increased its domestic movie production.
However, mainland China accounted for nearly all of its sales. It generated a mere $20.9 million (£15.7 million) in North America.
Commerce Secretary Howard Lutnick stated on X following the announcement, “We are actively investigating the matter.”
Mr. Trump and Mr. Lutnick did not provide any information regarding the implementation of the tariffs.
It was uncertain whether the tariffs would be assessed based on production costs or box office revenue, or whether they would be applicable to films that were screened in cinemas and on streaming services.
Additionally, Mr. Trump’s post did not address the potential impact on television programs, which are becoming more popular and profitable in the field of screen production.
Today, Hollywood executives were endeavoring to resolve specifics. The Motion Picture Association, which represents the main studios in the United States, did not provide an immediate response.
The British Film Institute and the UK’s Department for Culture, Media & Sport have also been contacted by MailOnline for comment.
The MPA reports that in 2023, American movies generated a trade surplus of $15.3 billion (£11.5 billion) and exports of $22.6 billion (£17 billion).
Leave a Reply