Trump's tariffs on foreign movies baffle entertainment industry

The entertainment industry reacted with a mixture of alarm and bafflement on Monday, 5 May, after US President Donald Trump said he would put a 100% tariff on all movies produced outside the US, but issued few details on just how such a levy would work.

- By Harshita Mary Varghese, Aditya Soni and Andrea Shalal

Trump's Sunday announcement was the latest in his series of levies on various global industries in an effort to boost industrial activity in the US.

But his trade policy, a combination of tariffs, rollbacks and investigations that could lead to more import taxes, has sapped consumer and business confidence because of their confusing implementation and left many businesses in limbo.

Tariffs on movies might prove more difficult to implement than even the highly integrated North American automobile industry.

The White House said on Monday that it had not made any final decisions on foreign film tariffs, but noted how Hollywood film production sharply declined from the previous year.

Trump did not say whether the duties will apply to films on streaming platforms as well as theatrical releases, nor did he detail whether the tariffs would be based on production costs or box office revenue.