In a surprise and contentious move, former U.S. President Donald Trump has suggested a 100% tax on all foreign-produced films, saying it’s needed to protect the American film industry. Posting his opinion on his social media site Truth Social, Trump expressed frustration that Hollywood is losing talent and productions to other nations that provide better incentives and deals.
Trump took a step further by claiming that foreign films are part of a broader attempt to undermine American culture, declaring the phenomenon a national security issue. Trump has instructed the U.S. Department of Commerce and the U.S. Trade Representative to start the procedure of applying the substantial tax on foreign films entering the U.S. market.
Yet a number of industry insiders are doubting the action, contending that Hollywood’s woes lie not in foreign competition but in its excessive reliance on sequels, remakes, and superhero blockbusters. Opponents say such a tax will increase ticket prices, making films less accessible to audiences and diminishing the quality of the movie experience in the U.S.
The suggested tax would have far-reaching ripple effects on world cinema, particularly Indian cinema. The Telugu film industry, in fact, has been consistently increasing its foothold in North America, with the support of the Telugu diaspora. With Telugu movies attracting huge crowds in U.S. theaters, industry observers are worried about how these new restrictions could affect future releases and box office collections.
U.S. Secretary of Commerce Howard W. Lutnick has confirmed that steps are already being taken to move forward with the tax implementation.
