In a radical decision to relaunch the American film industry, US President Donald Trump announced on Sunday that he had authorized the Ministry of Commerce and the US Trade Representative (USTR) to start the 100% price taxation process on all films produced outside the United States.
By publishing on his social platform Truth, Trump criticized other nations for having offered lucrative incentives to attract American studios and filmmakers abroad and described the situation as a threat that is both economic and national.
“The American cinema industry dies from a very fast death,” said Trump. “This is a concerted effort of other nations and, therefore, a threat of national security,” said Trump in an article on Truth Social. “It is, in addition to everything else, messaging and propaganda!”
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Trump highlighted the need to return to the production of national films and said: “We want films made in America again!”
He added that new prices are intended to level the rules of the game and encourage studios to keep their operations on American soil.
The 100% price offered on films made abroad follows less than a month after China's decision to reduce the number of Hollywood films authorized in its market, a response to Trump gutting unprecedented withdrawals from Chinese products. China is the second largest cinema market.
However, instead of relaunching Hollywood, the prices have the potential to turn around, more injuring major studios like Disney, Paramount and Warner Bros, who always recover from the pandemic, said CNN in a report. Indeed, many American films are shot abroad to benefit from tax loss and lower labor costs.
Trump's pressure at the prices on film production marks a gap of his accent on physical goods. If it is adopted, it would be the first American tasks targeting services rather than the goods.
With Reuters entrance
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