As an industry This makes films and TV programs – in the field of trade: services, not products – Hollywood may think they are safe from President Donald Trump Definitions. While the stock market took significant decreases during the past month, such as the players who like it Netflix Look like A good bet.
On Sunday, this changed. Trump took the social truth to announce that the American cinema industry was “dying” and that he wanted to return it using his favorite crane: definitions. Specifically, a 100 percent tariff for films coming to the United States, which was “produced in foreign lands”.
By Monday, White House spokesman Kush Disai was already pumping the brake into the statement, Tell Hollywood correspondence “No final decisions” have taken on the definitions. This did not prevent the industry from transforming. Stocks at Netflix, Disney and other media features I started slippingBut the real uncertainty was placed in a completely different question: How to hell tariff movies?
The definitions, as Trump, aims to make imports to the point that companies make their products in the United States. Movies, however, are not cars or iPhone. They do not come to ships and get taxes in the port. Do definitions apply to foreign films that American distributors have acquired? If an American studio makes a movie but he shoots a handful of scenes abroad, is this important? Will TV programs be included? Will you launch new films abroad, like the next? Mission: Impossible – Final AccountDo you find themselves getting a huge bill if the definitions enter into force in the line? Answers It was not coming.
Although customs tariffs are unlikely to have an impact that Trump claims he wants, a federal tax credit program for filmmakers – which politicians in California spend in years to defend this – can be a much stronger alternative. Nevertheless, to write these lines, Trump did not indicate that he had appetite.
A lot of confusion about Trump’s proposed tariff is the result of the maze methods that modern films get. Over the years, Hollywood Studios were depicted abroad in search of tax incentives provided in places such as the United Kingdom, Canada or Australia that support the cost of renting local facilities mainly and employing local crews in exchange for bringing business to those countries. Optical effects and other post -production aspects can also use external sources. Returning this work to the United States will be useful for American directors and their crews, but there is no clear indication that the customs tariff will do so. Most likely, studios will make fewer films, or – as consumers watched with a tariff on other commodities – the price of hitting Cinepex will rise.
In the two LinkedIn postDavid Hancock, a film analyst, wrote that “it is very difficult to see what the American government can actually target.” Often, films are digital files, and their rights are often divided between creators, financiers and other entities. “Either the United States government prevents American producers from working abroad, which greatly reduces the number of films that are produced and weaken their films significantly, or they have to create a federal tax credit plan” to help us studios in maintaining their production without seeing the high costs.
