In an unprecedented step that might completely disrupt Hollywood's worldwide business model, US President Donald Trump declared on Monday that he would levy a 100% tariff on all foreign produced films.
The action raises concerns for studios that rely significantly on foreign box office receipts and cross border co productions by indicating Trump's intent to expand protectionist trade policies into the cultural industries.In a post on his Truth Social platform, Trump announced the proposal, saying that foreign film production is outperforming American filmmaking.
"Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby," he stated in his letter.
What legal power Trump would use to put a 100% levy on foreign made films was unclear at first, though.
A Reuters request for comment on the tariffs' implementation was not immediately answered by the White House.
Additionally, Netflix, Comcast, Paramount Skydance, and Warner Bros. Discovery did not immediately reply to enquiries.
Early trading saw a 1.5% decline in Netflix shares.
Entertainment executives were uncertain whether the president's May proposal for a movie levy would apply to all imports or just certain nations because he provided so few specifics.
Earlier this year, studio executives told Reuters that they were "flummoxed" by the idea of enforcing a movie tariff because contemporary films frequently involve production, financing, post production, and visual effects that are dispersed across several nations.
Legal and trade analysts are sceptical of the move. Some contend that films are a type of intellectual property and a component of the international services trade, in which the United States frequently has excess supply, casting doubt on the legitimacy of tariffs.
The prevalence of co productions with international studios has also increased, raising questions concerning the classification of these kinds of films.
