Hollywood is shaken by Trump’s tariff plan for the movie industry | CNN Business

Trump's Proposed Movie Tariff

President Trump's announcement of a potential 100% tariff on movies produced outside the US has caused widespread confusion and concern within the Hollywood film industry. Many industry insiders believe the proposal is unrealistic and could severely damage the industry.

Industry Reactions

Reactions range from shock and disbelief to more open-minded views suggesting a dialogue about "runaway production." Shares of major entertainment companies fell following the announcement.

• Some see it as a complete halt to production, while others believe it's an attempt to address job losses in the US movie production sector.
• Concerns over the tariff's economic impact and its legality are widespread, given the nature of movies as services.

Uncertain Future

The feasibility and legal grounds of such a tariff are questionable. The nature of movies as intellectual property, categorized as services, raises questions about the applicability of tariffs. The assertion of a national security threat also lacks legal certainty. Despite this, industry leaders are engaging with government officials to address concerns. Discussions indicate the possibility of alternative solutions, such as federal tax incentives.

Questions and Speculation

The article also notes several key unanswered questions, such as:

• How will the tariff affect movies filmed partly in the US and partly abroad?
• Could it be a targeted action against Canada, a popular filming location?
• Is this a political move with little practical understanding of the film industry?