Donald Trump to impose 100 per cent tariff on all movies produced outside US, citing national security concerns
It's a new day and a new tariff, as US President Donald Trump unveils his latest move of slapping a jaw-dropping 100 per cent tariff on any film produced in 'foreign lands.'
As per the announcement, which was made on Sunday through his Truth Social media platform, this measure has come as a response to what Donald Trump describes as a coordinated attempt by foreign countries to sabotage the US film industry.
However, any more details on how the levy will be applied have not been disclosed yet, but Trump said that he has permitted the US Trade Representative and the US Department of Commerce to immediately start instituting the tariff.
'Messaging and Propaganda'
The president characterised the foreign films as forms of 'messaging and propaganda,' portraying international competition in the film industry as a potential national security risk.
Trump in the post wrote, 'This is a concerted effort by other nations and, therefore, a national security threat." "It is, in addition to everything else, messaging and propaganda!" he added.
pic.twitter.com/1gBo8jYAZR
The announcement has been made amid the growing tensions over trade practices between China and the US. On the other hand, China has reduced the number of American films that were allowed entry into the country, following Donald Trump's tariffs.
China condemns the US government's move
On April 10, the China Film Administration issued a statement condemning the US government's move, claiming that the tariffs would further diminish domestic audiences' interest in American films. A statement issued by them read, 'The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience's favorability towards American films."
'We will follow the market rules, respect the audience's choice, and moderately reduce the number of American films imported.'
A look at the entertainment industry
In recent years, the Chinese-made films have outperformed Hollywood releases in China, the world's second-largest film market after the United States.
Major studios like Warner Bros. Discovery Inc., Paramount Global, and The Walt Disney Company are still recovering from the financial impact of the COVID-19 pandemic and could face significant setbacks due to the 100 per cent tariff.
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