On Monday (Indian time), US President Donald Trump announced a new 100% tariff on overseas films, saying that the American film industry is "dying a very fast death," which he says is a national security threat.
Trump faulted other countries for offering different incentives, which, in his view, are luring filmmakers and studios to relocate their operations outside the United States.
"Industry in America is rapidly dying. Foreign countries are giving all types of the movie incentives to attract our filmmakers and studios from the United States. Hollywood and a great many other parts of the USA are being destroyed. This is an organized effort by other countries and, thus, a national security threat," he wrote on his social media platform, Truth Social.
"It is, of course, messaging and propaganda! Thus, I am directing the Department of Commerce and the United States Trade Representative to get started right away on implementing a 100 per cent tariff on any and all films entering our nation that are made in other countries. We want American-made movies again," said the post.
Addressing the press at the White House on Sunday, President Trump blamed California Governor Gavin Newsom for the decline in the production of movies in Hollywood, especially over the past few years.
He further blamed other nations for "stealing" movies and the art of filmmaking from America.
"If they don't want to make a movie within the United States, we should have a tariff when we bring in a movie," Trump further said.
Reports show that California film production has declined with budget reductions and better tax incentives provided by other areas. Also, the US film industry has experienced various economic setbacks over recent years, such as the Hollywood labor strikes and the effects of the COVID-19 pandemic.
In January, President Trump named three Hollywood acting stalwarts—Jon Voight, Mel Gibson, and Sylvester Stallone—as special ambassadors. Their mission is to encourage business in Hollywood, with Trump calling the industry a "great but very troubled place."
Trump told them they have the task of bringing back business to Hollywood, stating it "has lost much business over the last four years to foreign countries."
"They will be special envoys to me to bring Hollywood, which has lost a tremendous amount of business in the last four years to other countries, back -- bigger, better and stronger than ever before!" Trump tweeted at that time.
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