This is news that could well impact the entertainment industry. US President Donald Trump has announced that he intends to impose a 100% tax on films produced abroad and shown in the United States. This unprecedented measure aims to protect the local film industry, but could, above all, upset the balance of a largely US-centric sector.
Save Private Hollywood
On Sunday, May 4, Donald Trump announced the immediate launch of a process aimed at introducing 100% customs duties on films produced outside the United States, but shown on American soil. This statement, published on his Truth Social network, is in line with the Republican president's aggressive economic policy since his return to the White House.
Trump justifies this measure by the critical situation of the American film industry. According to him, “the American film industry is dying very quickly,” leaving Hollywood and many other parts of the United States “devastated.” In his crosshairs, he accuses other countries of implementing tax incentives and subsidies to attract American filmmakers and studios, which he now considers a “threat to national security.”
A multi-step process
The implementation of these customs duties will not be immediate: the first step in Trump’s new plan is to open an investigation into the impact of foreign film imports. This mechanism, already used in other strategic sectors such as semiconductors or minerals, could allow the president to issue a decree if the risk is proven. Ultimately, the country could decide to impose a surcharge on culture, as it is already considering doing with many other products.
For the time being, no details have been provided on the modalities of application of this surcharge, nor on the exact definition of the films concerned. The selection criteria and the timetable for the measure's entry into force also remain unclear. However, this decision, if implemented, would have serious consequences for international relations between the United States and the rest of the world.
A new episode in the trade war
This announcement is part of an escalation of trade tensions initiated by Trump against the United States' main economic partners, particularly China. Beijing reacted in early April by announcing a "moderate" reduction in the number of American films allowed in its cinemas. A crucial market for Hollywood studios, second in the world behind the United States.
It should be remembered that China already applies a system of strict quotas on foreign films, limiting their distribution within its territory. In response to Donald Trump's threats, a further reduction in access to this market could represent a significant loss of revenue for Hollywood, which largely depends on international box office revenue to make its blockbusters profitable.
By attacking the film sector, Donald Trump is taking a new step in his protectionist policy, transforming culture into an issue of national sovereignty on the same level as energy or defense. However, we must not fear trade reprisals that would exacerbate the already high tensions in the global entertainment market.
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