How Trump Tariffs on Foreign Movies Could Shape the Future of Cinema

Trump recently announced the immediate action on a New Tariff on every Foreign Film that is being imported to U.S. and this has open a heated debate worldwide as even though Tariffs is not a strange word anymore… it is shocking when they are applied to the Foreign Film Industry!

Now several questions arises such as:

• Are the tariffs made to protect local filmmakers?
• Will it Limit Foreign Cultural and Diversity Growth?
• Who will be the most affected; the Industry, Creators or the Consumer?

Let’s dive into the consequences and what it looks for the future of the Entertainment Industry. 

What Are Tariffs on Foreign Movies? 

Tariffs on foreign movies are essentially taxes or duties imposed by a country’s government on films made in other country. These Tariffs imply an increase of the cost of any imported foreign films. The intention behind these tariffs varies from country to country, but they generally serve two purposes:

Protecting Domestic Filmmakers: Governments impose these tariffs to support the local filmmakers and at the same time give them an edge over international productions.

Increasing Revenue: Tariffs on a big industry such as Movie Industry, is a way the government can generate additional revenue, although, it might reduce the international or cultural content on a country.

Economical Impact on the Filmmakers or Movie Industry

Increased Costs for Consumers
Most of these Projects, even when they tend to work on small budgets, with all the tariffs, the immediate consequence will be a rise in the price of importing films, similar to every other product, the distributors, Event Hosts or even Cinemas could pass on this cost to the consumer, which translates to more expensive tickets or cost of content for those International Film Lovers!

Limiting Cultural Growth
Films usually represent the culture, habits and perspectives of a community, by implementing tariffs on foreign movies, this could make them unaffordable not only to the consumer, but the Production Company could change the reach of the film, services and potentially limiting the Cultural Diversity from Foreign Movie Industry.

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Impact on Independent Filmmakers
In today’s world, with several streaming platforms, independent filmmakers could be the ones who will suffer the most, they tend to develop the project on smaller budgets, usually relying on international film festivals, streaming services and distribution to get more visibility or more reach to an audience. But with Tariffs, They may find it harder due to, distributors or streaming services will have to elevate cost and still take in consideration the profitability.

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Will this affect United States or its Film Industry?

One of the issues when implementing tariffs will always be, will there be retaliation? As Foreign Countries may impose the same towards the Films made in U.S. and taking in consideration U.S. sits a top of the box office revenue worldwide, this could impact financially, a Vast majority of the Film Industry, carrying losses not only financially but jobs and projects.

Not only will U.S. suffer financially, but, socially, as U.S. hosts one of the most important International Film Festivals around the World and they will be compromised and could start lacking of Diversity.

That being said, even if the Tariffs apply and do help give an edge on local Filmmakers, there will suffer a big cost for it.

How does the future look for a Cinema/Tariff world?

Well, most of the Streaming Services offer films from other countries, some Cinemas have those Films available or even the International Film Festival who provides them with visibility, will have to take a position over this, support local filmmakers and basically limit foreign films or find a way to ensure the Films without compromising their business.

Even with Tariffs, The Film Industry has always thrived due to the cultural diversity and perspectives of each country, not to mention, with the rise of streaming platforms, the bridge has been established even more! So it is safe to say, this Tariffs could provide uncertainty but it will all unveil in the future days.

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