Trump to impose 100% tariff on foreign-produced films

U.S. President Donald Trump said he will be imposing a 100% tariff “on any and all movies that are made outside of the United States”, CNN writes.

Trump did not specify when or how the tariff could be enacted.

As noted, if the U.S. president follows through with his threat, it would mark the first time he’s essentially imposed a tariff on a service rather than a good.

He initially threatened a 100% tariff on foreign-produced movies in May, arguing that other countries offer tax incentives that have drawn filmmakers abroad.

Hollywood was completely caught off guard when Trump first previewed the tariff in May.

“On first blush, it’s shocking and would represent a virtually complete halt of production,” one industry insider told CNN at the time.

American actors and directors generally prefer to work close to home. But “the fact is, it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper,” Jay Sures, vice chairman of United Talent Agency, told CNN in May.