Former President Donald Trump has just proposed a 100 percent tariff on all foreign-produced movies. Second, his Truth Social platform is not the right venue for announcing a momentous change in trade policy. This last-minute change is supposedly intended to shore up the U.S. film industry, which Trump claims is being outpaced by international competition.
In his statement, Trump expressed his frustration with foreign competition, stating, “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby.” This declaration is clearly a response to growing concerns across the political spectrum about the effects of global markets on domestic industries.
Background of the Proposal
This isn’t the first time Trump has threatened to impose tariffs on movies. So when President Biden first floated the idea back in May, it signaled a history-based interest in re-imagining U.S. trade policies to account for entertainment. But with the announcement, many in the industry now find themselves confused as to what this means for them. It is still not known if the final tariffs will be limited to certain countries or all imports.
All these proposals are shocking and industry executives are particularly up in arms over the proposed changes to the film market. Intellectual property Some scholars and practitioners believe that movies are an example of intellectual property. This new classification introduces more ambiguity into the legal underpinnings for imposing tariffs in the already murky international services trade. This is one of the rare sectors the U.S. dominates and actually manages a trade surplus. This begs the question of what exactly is driving the proposed import duties.
Impact on Furniture Imports
Beyond the proposed movie tariffs Trump has announced that he will place a 30 percent tariff on furniture imports. He noted that more information about these tariffs would be coming soon. This step is a bigger picture play as the Administration works to strengthen domestic manufacturing and lessen dependence on imported products.
The furniture sector poses challenges, as many companies do not have the necessary manufacturing capacity in the United States. Their increasing dependence on imports from other countries experiences the same stresses, especially as it relates to keeping competitive prices from countries like China, Mexico, and Vietnam. Trump’s tariffs, which include a 50 percent duty on imported kitchen cabinets and vanities, are set to take effect on October 1.
“I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States. Details to follow.” – Donald Trump
Concerns from Industry Executives
The third rail so far is trade. With executives from both the entertainment and furniture industries, the joint trumpeting of Lamentation. They fear that raising tariffs will raise prices for American consumers and scare foreign investment away from U.S. industries. The uncertainty surrounding the application of these tariffs further complicates planning and strategy for businesses reliant on global supply chains.
Moreover, industry leaders have highlighted that the U.S. market’s strength lies in its ability to offer diverse products and services. The imposition of excessive tariffs would restrict the options available to American consumers. This would develop barriers for companies attempting to better serve the community’s needs.
