U.S. President Donald Trump has once again made significant changes. This time, he has targeted all the films that we are fans of. The current hot debate is that Trump is imposing a 100% tariff on foreign films. This means that films from France, Canada, or Hungary (and there are many) could cost twice as much to bring into the U.S. I don’t understand the logic behind this. Maybe I am unable to digest this news. Hollywood is trying to understand what this means, too.
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What Trump Actually Said About the Foreign Film Tariffs
Trumps proposes to encourage filmmakers to return production to the U.S. by imposing taxes on movies made abroad. For him, it might be a good way to support American cinema. But, if you scrutinize, you’ll know how complicated things will be.
Many executives and industry insiders have reported CNN shockingly about recent developments. One insider says:
“On first blush, it’s shocking and would represent a virtually complete halt of production.”
Film industry has already struggled a lot after delays from COVID and decline in content streaming. And now this tariff is bashing badly. Jay Sures, vice chairman of United Talent Agency says:
“The fact is it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates, and the ability to make things overseas is infinitely cheaper.”
He’s right. Studios have been saving a lot of money by filming in countries like Canada and Hungary, where they get reasonable tax incentives and lower labor costs. So, if that 100% tariff is put in action, studios may either absorb the extra expenses or charge them from you.
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Can Trump Even Do This?
That’s the big question. Some experts think it’s a legal gray area. Movies are seen as a service rather than a product. Maybe this logic can keep tariff away. On the other side, do you think that labeling foreign films as a national security threat would stand up in court? Trump thinks so.
Suppose, if a film is 98% shot in Georgia and 2% in Prague, would it be taxed? And what about shows like Emily in Paris? Trump is testing the waters, but for Hollywood this is a serious matter.
Personally, I’m so concerned about this tariff trick. Production jobs declined over time as U.S moved overseas. It’s a fact that many movies are being filmed outside the U.S. because it’s more cost-effective. I’m curious if Trump’s stand about 100% tariff on foreign films is just a way to criticize Hollywood for its liberal views. I wonder is he being problematic because we didn’t support him? Not a new thing.
What if this nightmare becomes reality? Our most favorite like James Bond, Harry Potter, and Dune, could confront high production and distribution costs. A future of few films, long wait for new releases, or even expensive tickets is a future I am predicting.
[via cined; Image credits: Gage Skidmore via Wikimedia Commons]
Disclaimer: DIYP tries to stay politically neutral. This article is intended to keep you informed, not to engage in political debate, so we encourage thoughtful and respectful discussion in the comments.
