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- President Donald Trump said Sunday that he authorized a 100% tariff on films made abroad.
- The news surprised the film industry and the media giants, since Trump extended the scope of its commercial policy beyond the importation of physical goods. The president called to tax incentives that attract the production of American films abroad a “national security threat” in a real social position on Sunday.
- The announcement hit media giants such as Disney and Netflix in early trade.
President Donald Trump on Sunday said he authorized a 100% tariff on films made abroad, blinding the film industry and the giants of the media while carrying his war of fees beyond the taxes on the importation of physical goods in the country.
The announcement, made by the president on his Truth social platform, was reaching the actions of media giants such as Walt Disney Co. (DIS) and Netflix (NFLX) on Monday morning. Disney’s shares, which reports quarterly results on Wednesday, quoted 2%, while Netflix were 5% lower in the market prior to the market.
The president called on tax incentives that attract the production of American films abroad a “national security threat” in a real social position on Sunday and said that tariffs on all the films produced in “foreign lands” would immediately come into force. Many American films and television programs are held in Canada and the United Kingdom, which offer tax incentives, among other places.
“The film industry in the United States is dying a very fast death,” Trump said. “Other countries offer all kinds of incentives to attract our filmmakers and studies in the United States. Hollywood, and many other areas within the United States are being devastated.”
“We want movies made in the United States, again!” He concluded in his publication, which did not appoint specific companies.
Netflix and Disney did not immediately respond to comments requests. According to reports, industry executives were surprised by the announcement, especially because it was not clear what the tariffs would imply.
The film industry “generated a positive trade balance in all the main markets of the world,” according to the latest economic impact report of the Picnogical Picts Association.
