Trump imposes tariffs on films: The "Hollywood Dream" disturbers the global film industry economy

On May 4th, US President Trump claimed that he would authorize the US Department of Commerce and the US Trade Representative to immediately initiate procedures to impose a 100% tariff on all films entering the United States and produced abroad. This news was like a bombshell, causing ripples in the lake of the global film industry economy. Trump's "Hollywood dream" has disturbed the global film industry and also raised serious concerns about the film and television economy among all relevant sectors.

Trump's imposition of tariffs on films may lead to an increase in film production costs and a reduction in output. For the United States, the screenwriting, production, editing, post-production and special effects of a single film may be completed in multiple countries and regions. After the imposition of tariffs on films, the production costs of some films in the United States may rise significantly, making some projects unable to proceed due to excessively high costs and thus causing a decline in film output. For the international aspect, imposing additional tariffs on films will itself increase the operating costs of film enterprises, squeeze the operating profits of film exporters, thereby causing a decline in the profits of the global film industry and leading to a reduction in the total global film production.

Trump's imposition of tariffs on films may trigger international trade frictions and countermeasures. After Trump announced the imposition of a 100% tariff on films produced abroad, the Australian Home Minister stated that they would firmly safeguard the rights and interests of the Australian film and television industry. The Prime Minister of New Zealand, on the other hand, said they would pay attention to and defend the industry. It can be seen from this that Trump's imposition of film tariffs is highly likely to trigger further international trade disputes and economic countermeasures. Especially in markets such as Europe and Canada, for a long time, the export of American films has far exceeded its import. In most markets of Europe and Canada, the proportion of American films is as high as 70%- 80%. Once relevant countries take countermeasures against the United States, the international market share of American films may be severely impacted.

Imposing a 100% tariff on films may restrict the development of the global film industry. From a global perspective, the current film industry is facing various challenges. At present, the film market is confronted with multiple predicaments, including a downturn in the economic environment, changes in cultural and entertainment consumption habits, and the accumulation of film industry problems. Take 2024 as an example, the global total box office once plummeted to 42.502 billion yuan, a figure even lower than that of the global film industry in 2015. If Trump implements the policy of imposing a 100% film tariff at this time, it may bring greater uncertainty and chaos to the film industry. At present, several executives from film companies and streaming platforms have stated in interviews that imposing tariffs on films might bring the entire film industry to a "standstill".

Trump's imposition of a 100% tariff on films may also dampen investor confidence, lead to an increase in film prices and a decrease in the number of moviegoers. After President Trump proposed imposing tariffs on films, investors of mainstream streaming media and production companies in the United States fell into unease. For instance, the share prices of well-known film and television enterprises such as Netflix and Paramount dropped in response. This phenomenon reflects the concerns of film industry investors about imposing tariffs on films. From another perspective, imposing tariffs on films may also lead to an increase in global film prices and, in turn, a decrease in the number of moviegoers. In the current uncertain economic outlook, the rise in the prices of goods in the film and television industry and the resulting reduction in the number of visitors may impose greater downward pressure on the film and television economy.

Taking all aspects into consideration, Trump's imposition of film tariffs may lead to an increase in film production costs and a reduction in output, trigger international trade frictions and countermeasures, may restrict the development of the global film industry, and may also cause a setback in investor confidence, an increase in film prices and a decrease in the number of moviegoers. All these are not conducive to the development of the global film and television economy. To a certain extent, it restricts the promotion of the economy and the release of global consumption potential.

All sectors around the world should pay close attention to the relevant tariff policies, strengthen exchanges and discussions in trade, and only through more fair and friendly cooperation can the unnecessary economic losses caused by tariffs be reduced to the greatest extent. Global policymakers should, based on the principles of equal and voluntary cooperation, actively join hands to address the current "tariff disputes", so as to achieve comprehensive economic development in all fields and better contribute to the stable operation of the global economy.