Trump's Tariff Tactics: Hollywood vs. Global Cinema

U.S. President Donald Trump has announced a 100% tariff on movies produced outside the U.S., citing a national security threat from foreign film incentives. The plan aims to rejuvenate Hollywood but faces potential retaliation and complexities in implementation. Hollywood faces diminishing production amid global competition.

In a dramatic move, U.S. President Donald Trump has unveiled plans for a 100% tariff on movies produced outside the country. Citing the detrimental impact of foreign incentives on American filmmaking, Trump labeled the situation a national security threat and emphasized the need for movies to be made in the U.S. once more.

Commerce Secretary Howard Lutnick confirmed the administration's swift action on Trump's directive, but details on the implementation of the tariffs remain unclear. The announcement has left Hollywood executives and the Motion Picture Association grappling for clarity regarding the impact on both theatrical releases and streaming platforms.

The global film industry has seen a shift in production to countries offering lucrative tax incentives, with major studios like Disney and Netflix filming overseas. Trump's decision, part of broader trade conflicts, risks prompting retaliation that could harm the U.S. industry. Former commerce official William Reinsch warns of greater losses than gains from such a move.

(With inputs from agencies.)