The president of the USA Donald Trump He affirmed that he would meet with executives from Hollywood After surprising the American film industry with a 100% tariff plan for films made abroad.
The actions of Netflix Inc., Paramount Global, Warner Bros. Discovery Inc. and other media and entertainment companies fell. The US film and television industry generated US $ 22.6 billion in exports.
In addition, this implied a US $ 15.3 billion surplus, according to a report by the Motion Picture Association of 2023. There they added that the industry generated a positive commercial balance with all the main markets of the world.
Donald Trump wants to meet Hollywood for cinema
“So we will meet with the industry,” Trump said Monday afternoon and added: “I want to make sure they are happy with it, Because what matters to us are jobs”, By appointment of Bloomberg.
“Although no definitive decision on tariffs on foreign films has been made, The administration is studying all the options to comply with the directive of President Trump to safeguard national and economic securitywhile making Hollywood big, ”said White House spokesman Kush Desai on Monday.
For tariffs, the administration could be based on the Article 232 of the Commercial Expansion Lawwhich gives the Department of Commerce 270 days to Investigate the alleged dangers of certain imports.
Film tariffs: sure?
At the end of the case analysis, the president could impose tariffs. This authority was already used by Trump to apply them to cars and metals. But they claim that In the case of movies, it would be complicated.
Many Hollywood films imply a global production, with locations and postproduction works anywhere in the world. Nor is it known if the tax would apply to films already shot but not released, or only to the new productions.
In 2024, international markets represented More than 70% of the total Hollywood box office revenues and tariffs They could trigger reprisals with “billions in revenue losses”according to the attached strategy professor at Cornell University Heeyon Kim.
This “would affect not only the great studies, but also thousands of jobs in the production, marketing and distribution”He added in Bloomberg. This would be the first time that the US government raises tariffs on services, according to Madison and Wall analysts in a note.
Jurisdictions such as the EU stated the same plan in retaliation and China announced that “moderately reduce” the number of Hollywood films allowed in the country.
Source: Ambito
