In a recent Truth Social post, Donald Trump announced plans to impose a 100% tariff on movies produced outside the United States, though details on implementation remain unclear. This move, targeting a service rather than a good, follows similar threats made earlier this year and singles out California for its perceived impact. The proposed tariff has raised concerns within the entertainment industry, as it could potentially halt foreign film production, which benefits from cheaper labor and tax incentives. Despite the impact on the industry, share prices for some movie-related companies opened higher after the announcement.
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Trump announces a 100% tariff on movies produced outside the US. The sheer audacity of the announcement alone is enough to leave anyone speechless. The immediate question, of course, is how this is even remotely feasible. How do you tariff something that exists primarily as digital data? Do the tariffs apply to physical media like DVDs, assuming they’re even still a major distribution method? And if so, what about domestically produced DVDs containing foreign films? The complexities seem insurmountable.
The plan seems to lack any real consideration for the practical implications. It’s unclear whether streaming services are included; how production costs, box office revenue, or a combination of factors would determine the tariff amount; or even what constitutes a sufficiently “foreign” movie, given that many productions are international collaborations.… Continue reading