Trump takes his tariff war to the movies announcing 100% levies on foreign-made films

AP President Donald Trump says he will slap a tax on movies made outside the United States a vague directive aimed at protecting a business that America already dominates Claiming that movie production has been stolen from Hollywood and the U S Trump posted on his Truth Social platform that I will be imposing a tariff on any and all movies that are made outside of the United States It was unclear how these tariffs would operate since movies and TV shows can be transmitted digitally without going through ports Also unclear is what it would mean for U S movies filmed on foreign locations think James Bond and Jason Bourne or what legal basis the president would claim for imposing the tariffs The president had first issued the threat back in May He has yet to specify when the tariff might go into effect Movies are an odd battleground for a U S exchange war Unlike any other country s film industry U S movies are the most of accessible well-known and best performing due to the numerous language options and worldwide reach provided by U S -based studios commerce analyst Jacob Jensen of the center-right American Action Forum wrote in a July commentary In movie theaters American-produced movies overwhelmingly dominate the domestic marketplace Information from the Motion Picture Association also shows that American films made billion in exports and billion in exchange surplus in with a contemporary summary noting that these films generated a positive balance of arrangement in every major field in the world for the U S Barry Appleton co-director of the Center for International Law at the New York Law Center warned that other countries may retaliate with levies on American movies or other services In movies Brand America is way way ahead he declared What this guidelines does is truly cook the golden goose that s laying the golden eggs Tariffs are Trump s go-to key for America s economic problems a tool he likes to use to extract concessions from other countries Reversing decades of U S promotion for lower agreement restrictions he s slapped double-digit tariffs on imports from almost every country on earth And he s targeted specific products including the bulk in recent times pharmaceuticals heavy trucks kitchen cabinets and bathroom vanities Unlike other sectors that have in recent days been targeted by tariffs movies go beyond physical goods bringing larger intellectual property ramifications into question Here s what we know Why is Trump threatening this steep movie tariff Trump has cited national measure concerns a justification he s similarly used to impose import taxes on certain countries and a range of sector-specific goods In May Trump claimed that the American movie industry is DYING to a very fast death as other countries offer all sorts of incentives to draw filmmaking away from the U S In modern years U S film and television production has been hampered between setbacks from the COVID- pandemic the Hollywood guild strikes of and the latest wildfires in the Los Angeles area Incentive programs have also long-influenced where movies are shot both abroad and within the U S with more production leaving California to states like Georgia and New Mexico as well as countries like Canada At the same time international markets make up a large chunk of Hollywood s total box office revenue accounting for over last year according Heeyon Kim an assistant professor of strategy at Cornell University She warned that tariffs and probable retaliation from other countries impacting this industry could effect in billions of dollars in lost earnings and thousands of jobs To me this makes just no sense Kim previously described The Associated Press adding that such tariffs could undermine otherwise a thriving part of the U S economic activity The International Alliance of Theatrical Stage Employees which represents behind-the-scenes entertainment workers across the U S and Canada commented in May that Trump had correctly recognized the urgent threat from international competition that the American film and television industry faces at present But the union noted it instead recommended the administration implement a federal production tax incentive and other provisions to level the playing field while not harming the industry overall How could a tax on foreign-made movies work That s anyone s guess Traditional tariffs apply to physical imports traveling borders but film production primarily involves digital services shooting editing and post-production work that happens electronically Ann Koppuzha a lawyer and business law lecturer at Santa Clara University s Leavey School of Business explained when Trump first made his May threat Koppuzha added that film production is more like an applied organization that can be taxed not tariffed But taxes require Congressional approval which could be a challenge even with a Republican majority Making a movie is also an incredibly complex and international process It s common for both large and small films to include production in the U S and in other countries or overseas altogether Steven Schiffman a longtime industry veteran and adjunct professor at Georgetown University pointed to popular titles filmed outside the U S such as Warner Bros Harry Potter series which was almost entirely shot in the U K U S studios shoot abroad because tax incentives can aid production costs But a blanket tariff across the board could discourage that or limit options hurting both Hollywood films and the global industry that helps create them When you make these sort of blanket rules you re missing a few of the nuance of how production works Schiffman noted previously Sometimes you just need to go to the location because frankly it s way too expensive just to try to create in a soundstage Could movie tariffs have repercussions on other intellectual property Overall experts warn that the prospect of tariffing foreign-made movies ventures into uncharted waters There s just no precedent Koppuzha explained in May And while the Trump administration could extend similar threats to other forms of intellectual property like music they d encounter the same practical hurdles But if flourishing particular also warn of expected retaliation Kim pointed to quotas that particular countries have had to help boost their domestic films by ensuring they get a portion of theater screens for example A great number of have reduced or suspended such quotas over the years in the name of open contract but if the U S places a sweeping tariff on all foreign-made films these kinds of quotas could come back which would hurt Hollywood film or any of the U S -made intellectual property Kim reported And while U S dominance in film means there are fewer substitutes for retaliation Schiffman noted that other forms of entertainment like tournament rise could see related impacts down the road