Trump proposes 100% rates to foreign films as it declares Hollywood Critical for U.S. National Security

• President warned that countries are “stealing films” from Tinseltown In a concerted effort that threatens the United States, granting -the freedom to impose tariffs. Not only is it not clear how import rights could be collected in films and what criteria would be applied, according to experts, but real risks can reason in technology, not geography.

First it was steel, then it was cars, now they are movies. The list of industries considered critic to safeguard U.S. National Security grew on Sunday after President Trump declared 100% imposing plans on films abroad.

The president argued that Tinseltown has been “devastated” by countries that offered incentives to studies to shoot at the location.

“This is an effort conceived by other nations and, therefore, a threat of national security,” he said, which meant that foreign films could impose other antithetical opinions on North -American values. “It is, in addition to everything else, messaging and propaganda.”

The first 100 days of Trump have been characterized by a “Economic war against the whole world“, A minute by imposing the rates, just to return the next.

A movie rate, however, would be the first time Trump collected import rights to something beyond tangible products produced by manufacturers. While films require physical rollers to be operated on in a cinema, films themselves are often ranked into audiovisual services under international trade. Meanwhile, movies transmitted at home are seen as digital products Is still subjected to a moratorium on rates.

Uncertainty about how rates could be applied to movies

“We are there,” Trump’s Secretary of Trade, Howard Lutnick published into X.

Determine if a good is domestic or foreign is quite simple. Beneath theRules of originGovernments examine the amount of content of a specific product comes from entries sent from abroad and if certain thresholds are fulfilled, they are exempt.

Electric vehicles mounted in the United States, for example, could be considered imports if they are based on battery cells, the highest cost of the goods bill, which are imported from China.

It is not clear how this same approach to films can be applied to determine their economic nationality. There is commercial protectionism, but it takes the form of non -tariff barriers such as quotas and mandates designed to serve domestic audiences or promote specific culture.

“It’s not clear what will be affected. Is it just movies or also transmission series?” Henning Molpenter, former film chief and television production in Germany Babelsberg’s studio he said In comments to The Hollywood Reporter. “These are visual effects, co -productions, international film funding? There is a great degree of uncertainty.”

Trump warns that other nations have been stealing movies “

By virtue of the Constitution, only the government’s legislative arm has the authority to ratify commercial agreements and when it is necessary to restrict the flow of goods and services through rates. However, there is an exemption that allows the executive branch to intervene in trade when there is a threat to the security of the country.

Trump has regularly relying on this exception. In its first 100 days, it has imposed sectoral rates in addition to its so -called “reciprocal rates” in the countries without seeking the consent of Congress.

"Other nations have been stealing the United States Movement Capabilities," say @Potus.

"Hollywood is being destroyed … If they are not ready to make a movie in the United States, we should have a rate in the movies they enter." pic.twitter.com/g3lxogpmj

– Rapid response 47 (@RapidResse47) May 5 2025

“Other nations have been stealing films, United States film capabilities,” Trump told journalists later. “I told a couple of people” what do you think about it? “”

Hollywood protection of foreign competition may surprise many observers, as it is considered a democratic fortress often seen with suspicion by Trump’s Maga Base. But in fact, it has been recently successful.

In the midst of a global decrease in the production and intensification of competition for film projects, location production in Los Angeles, in most main studies, declined by 22% during the first quarter, according to the first quarter, according toData published last monthof film.

The World Trade Organization refused to provide a statement, sayingFortuneHe does not comment as a general rule on the policies of its members.

Artificial intelligence and Tiktok are the true threats for Hollywood

If the rates are an effective policy to respond to the deeper Hollywood problems and remains speculative in the return of its golden age.

Stephen Wolfe Pereira, a former media outbreak with a Spanish-language issuer Univision, called the idea that American national security is threatened by the decline of the film industry.

In addition, you can find the true threats to the industry in other countries, but elsewhere.

“AI replaces more than 20% of production roles today, regardless of the role of cameras, so the true interruption is not geographical, it is actually technological,” Wolfe Pereira I talked to Bloomberg Television in an interview.

This is also not the only structural faces of Hollywood. Content generated by the user in social networking sites such as Tiktok, regularly, studies for consumer care.

“The increase in digital technologies (I) of the alternative means of entertainment,” said Wolfe Pereira, “these are much larger threats for the traditional Hollywood ecosystem.”

This story originally presented to Fortune.com

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