US President Donald Trump announced a 100% tariff on all films produced abroad and shipped into the US. This move, according to Trump, is aimed at saving the country's film industry, which he claims is experiencing a "collapse" due to foreign incentives that are luring film producers out of Hollywood.
Trump stressed that foreign countries' efforts to attract film production are a national security threat because they also involve propaganda elements. He ordered the Department of Commerce and related agencies to immediately implement the tariff policy. However, the details of the implementation, such as whether it covers digital streaming or only cinema screenings, are still unclear.
The move has caused confusion and concern among industry players in the US and abroad. Countries such as Australia and New Zealand have expressed support for their local creative industries, while Britain has called on the government to act to protect its film sector. There are concerns that the new tariff will threaten thousands of freelance jobs in the film industry.
Statistics show that almost half of high-value projects by US producers are made abroad. California now ranks only sixth as a preferred destination for film production, behind countries such as Canada, Britain and Australia.
Analysts have warned that retaliation from other countries could destroy the American film industry. A former senior Commerce Department official said the US could lose more than it would gain from the tariffs, which are considered high-risk economic and diplomatic measures.
