President Donald Trump has floated a 100 percent tariff on films produced in other countries, but one of his chief political rivals would mostly be shielded from the policy if it goes into effect.
Why It Matters
Trump wrote in a Truth Social post Sunday that he wants to impose the tariff on movies produced in other countries as a way to help save the “dying” film industry. How the tariffs may be implemented and enforced remains a question Hollywood is facing on Monday, as films are not a material good affected by his other tariffs such as the 145 percent tariffs on all Chinese imports.
Trump has argued that the tariffs would boost U.S. manufacturing and close the trade deficit with other countries, despite economists warning the policy would mean Americans will pay more for consumer goods.
His film tariff suggestion was met with some pushback from industry leaders, as it’s common for movies to film in the U.S. and abroad. The White House, meanwhile, said on Monday that “no final decisions on foreign film tariffs have been made,” the Associated Press reported.
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What To Know
The tariffs would have little effect on former President Barack Obama and first lady Michelle Obama‘s film production company, Higher Ground Media. That’s because most of the production already takes place in the United States.
Higher Ground Media has produced four feature films—Fatherhood, Worth, Rustin and Leave the World Behind.
Leave the World Behind was filmed primarily in New York, Rustin primarily in Pittsburgh and Worth in Oregon. Fatherhood wasfilmed in Boston, with some scenes shot in Canada.
The company’s documentaries, such as American Factory, have also primarily focused on American subjects and thus have been filmed domestically.
Newsweek reached out to Higher Ground Media for comment via Facebook message.
What People Are Saying
Spencer Hakimian, founder of Tolou Capital Management, on X, formerly Twitter: “There is no basis in economic reality to impose tariffs on a product you have a trade surplus in. Trump is doing this simply because the wealthy powerbrokers in the film industry in California have never seen him as anything more than a clown, and he wants to extract whatever petty vengeance he can with his final years of relevancy on this planet.”
Justin Wolfers, professor of economics at the University of Michigan, on X: “If Trump is serious about tariffs on movies, it’s a very dangerous escalation. Tariffs have not traditionally been applied to services, and the United States is a massive net exporter of services. We would be extremely vulnerable to any service-based retaliation.”
President Donald Trump, on Truth Social: “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. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am 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. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
What Happens Next
It’s unclear whether Trump will actually impose the film tariff. His tariff on Chinese imports remains in effect, but other reciprocal tariffs have been put on a 90-day pause that began on April 16 to allow countries to have more time to negotiate new trade deals.