The trade tensions continue to escalate, and now an unexpected sector is being drawn into the fray. This could present challenges for American consumers who enjoy a specific niche.
Donald Trump has been aggressively increasing tariffs, showing no signs of slowing down.
The ongoing dispute with China has resulted in a significant 145 percent tariff, indicating a trend where importing goods from China might become prohibitively expensive.
In response, China increased tariffs on U.S. goods from 84 percent to 125 percent. This prompted the President to sign an executive order to investigate the national security implications of the U.S.’s dependence on imported processed critical minerals and their derivative products.
Amidst all this attention, another industry is now facing steep tariffs.
According to Trump, this industry is in decline and needs urgent intervention. He claimed on Truth Social that other countries have coordinated an ‘attack’ against it, posing a ‘national security threat’.
Which industry is reportedly in peril?
The film industry.
Yes, the very industry known for producing Hollywood stars is said to be on the brink.
Trump plans to introduce 100 percent tariffs on foreign-made films to help preserve U.S. film production.
Due to the severity of the situation, he stated that the U.S. Department of Commerce and the Trade Representative are being authorized to impose these tariffs to bolster domestic movie production.
Trump expressed: “The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.”
Labelling it a ‘concerted effort by other Nations and, therefore, a National Security threat’, he also accused foreign films of containing ‘propaganda’ in their messages.
To address this ‘threat’, he is ‘authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands’.
He concluded: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
While Trump declared tariffs on foreign films, he did not specify whether this would extend to American companies filming abroad.
It remains unclear if this policy will impact platforms like Netflix, which produce content globally, or affect the cinema industry that operates both domestically and internationally.
It appears the film industry has been a focus for Trump since the start of his second term, as seen with his appointment of film stars Jon Voight, Mel Gibson, and Sylvester Stallone to roles promoting Hollywood business opportunities.
“They will serve as Special Envoys to me for the purpose of bringing Hollywood, which has lost much business over the last four years to Foreign Countries, BACK – BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!” Trump shared online at the time.
In retaliation, China announced a reduction in the number of American films allowed in its market last month, following the tariffs.
“The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films,” the China Film Administration said.
“We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”