Foreign films will be charged 100% tax
US President Donald Trump made a shocking announcement on Monday. He said that now every film made outside America will be imposed 100% tariff (fee). This decision is completely new and shocking for the film industry, which can shake the film industry of the whole world, not only Hollywood.
Trump said this on his social media platform ‘Truth Social’. He wrote that other countries have taken away the film industry of America from us, like someone takes away the toffee from a child. His statement has become a matter of great concern for the American film industry, because a large part of Hollywood’s earnings comes from abroad. If this decision is applicable, then it will also affect filmmakers and audiences around the world.
Hollywood will also break back with tariff
After this announcement of Trump, the tension of large studios and digital platforms of Hollywood has increased. Big companies like Warner Bros Discovery, Comcast, Paramount, SkyDance and Netflix have not yet made any official statement on it. Actually, now films are not made only in America. Their shooting, funding, post-production and Visual Effects are done worldwide. In such a situation, it is difficult to understand how and how the decisions of 100% tariff of Trump will be implemented on. Many experts are also surprised whether there is any legal basis for taxing foreign films. At the moment, there is an atmosphere of confusion and restlessness in the industry.
Is this decision against trade rules?
Specialists associated with law and business are raising serious questions about this proposed tariff of Trump. He says that films are actually intellectual property (intellectual property) and they are part of global service trade. The US itself often makes profit from foreign markets in this sector, in such a situation such tariff policy can be considered against the International Trade Rules.
Apart from this, nowadays the trend of co-production ie joint construction has increased greatly, where a film is made together with many countries. Now in such a situation, it will be even more difficult to decide which film will be tariff and not on whom. Hollywood officials are confused about this entire issue and are waiting for some clear guidelines right now.
Its effect on the market too
Trump’s statement also showed the direct impact on the market. Netflix shares declined by about 1.5% during early trade. At present there is no official statement from the White House as to how these tariffs will be applicable or what will be its legal process. It is worth noting that earlier in May, Trump had talked about putting tariffs on foreign films, but even then he did not tell any concrete plan or rules. Now the film industry and trade experts are busy understanding and assessing the far -reaching impact of this decision.