Cnn
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President Donald Trump extended his business war on the cinema on Sunday.
Trump, in a evening station On his social media platform Truth Social, said that he had asked the Commerce Department and the Commercial Representative of the United States to place a 100% rate on films produced outside the United States and imported to America.
“The film industry in America dies from a very rapid death. Other countries offer all kinds of incentives to keep our filmmakers and studios from the United States,” wrote Trump in his article. “Consequently, I authorize the Ministry of Commerce and the representative of the United States, immediately starting the institute process a price 100% on all the films that enter our country which are produced at foreign land. We want films made in America, again!”
It is not at all clear how such a price would be imposed. Films are an intellectual property, not goods, they therefore represent a kind of service which is not currently subject to prices. However, the USTR notes that certain services can be subject to some non -tariff commercial barrierssuch as tax regulations and incentives. They could disadvantage American cinema.
Many foreign cities have offered significant tax lounge to movie and television studios to shoot films and programs outside Hollywood. This has led to a large number of productions to move operations to places like Toronto and Dublin. In response, California Governor Gavin Newsom has proposed a massive tax credit To bring production to Hollywood.
“Hollywood and many other areas in the United States are devastated,” said Trump. “This is a concerted effort of other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda! ”
Although Hollywood is far from devastated, cinema tickets have broken down in the United States, because the number of major images that strike the rooms have dropped from the pandemic-and consumers have moved their vision habits to streaming platforms to look at home.
US BOX Office Gross completed a little less than $ 12 billion in 2018 before NoseDiving at just over $ 2 billion in 2020, when many theaters were closed due to COVVID. Although the theaters have rebounded, the number of versions is about half of what it was in 2019, and the total inner box office has not overshadowed $ 9 billion since.
The streaming networks largely belong to the major Hollywood studios, but – apart from Netflix – have taken years to make a profit. Disney + has just achieved its first profit, just like Max, which shares CNN’s property. Many other streamers have not yet made money.
But placing prices or other commercial obstacles on products made abroad may not facilitate business for Hollywood studios. Many American films and programs are shot on site outside the United States. In addition to fiscal reductions, many members of foreign staff require cheaper remuneration, making certain films more economically viable to produce.
Trump has castigated non-tariff trade barriers that other countries are placed in the United States, but so far has limited America’s reprisals at traditional goods on goods. Trump imposed a universal price of 10% on most of the goods that arrive in the United States and have set up – then delayed – even greater “reciprocal” prices on dozens of other nations. He also placed 25% of steel, aluminum, automobiles, automotive parts and certain goods from Canada and Mexico. And he put a massive rate of 145% on imports from Canada.
But none of these prices are on services. The prices on film production – if they arrive – could be the first.