Victor EzejaThe United States President, Donald Trump, has announced his administration’s decision to impose a 100 per cent tariff on movies produced outside the United States.
Announcing this on Sunday, Trump said the incentives that drive foreign production are a “National Security threat” and is very inimical to the sustenance of the American film industry.
Join our WhatsApp ChannelIn a statement posted on his Truth Social handle, Trump said: “We want movies made in America, again!”
Trump stated that he has directed relevant federal departments, including the Department of Commerce, to “immediately begin the process” of implementing the tariff.
However, Trump and his team have yet to provide specific details about how the tariffs would be implemented.
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According to Reuters, industry insiders are wondering if the tariffs will apply to streaming services as well as theatrical releases, and how they will be computed, whether based on production costs or box office revenues.
Since his assumption of policy, Trump’s policies, according to observers, had been focused on reviving domestic production across all sectors in the U.S. economy, and one strategy he has adopted in pursuing that is through imposing what is considered high tariff on goods imported into the country to discourage patronage or consumption as a result of the consequent hike in cost.
As part of his efforts to revive the American movie industry, Trump appointed Hollywood veterans Jon Voight, Sylvester Stallone, and Mel Gibson in January to lead efforts to bring Hollywood back “bigger, better and stronger than ever before.”
READ ALSO: Trump’s Tariffs, Golden Cards, And Cost Of Deregulation
There are indications that over the years, Film and television production has been progressively leaving Hollywood to other places with better tax incentives.
Research conducted by ProdPro in 2023 revealed that approximately half of all spending on film and television projects with budgets greater than $40 million were done outside the United States. \
Reports indicated that all major media firms, including Walt Disney, Netflix, and Universal Pictures, are now filming abroad in countries such as Canada and the United Kingdom, taking advantage of credits and financial reimbursements provided by foreign governments.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
