Trump proposed imposing a 100 percent tariff on foreign films.

US President Donald Trump has instructed the Commerce Department and the US Trade Representative to impose a 100% tariff on foreign films. He announced this on his social media account, Truth Social.

"The American film industry is dying very quickly. Other countries are offering all sorts of incentives to lure our filmmakers and studios away from the United States," the American leader noted.

He said Hollywood was "being hollowed out," which he considered a "national security threat."

Trump has decided to impose a tariff on all films produced abroad and brought to the United States.

As CNN notes, it's unclear how the tariff will be applied. Films are intellectual property, not goods, and are not subject to tariffs. However, the Office of the U.S. Trade Representative (USTR) clarifies that some services may be subject to certain non-tariff trade barriers, such as regulations and tax incentives. This could harm American film production.

Many cities abroad have offered film and television studios significant tax breaks for filming outside of Hollywood. This has led to production shifting to cities like Toronto and Dublin. In response, California Governor Gavin Newsom proposed a tax credit to bring production back to Hollywood, CNN reports.

According to The Wall Street Journal, this year's highest-grossing film, "Minecraft: The Movie," was shot abroad, as were "Mission: Impossible – Final Reckoning" and "Jurassic World: Resurgence." Marvel Studios is filming two "Avengers" sequels in London .

US box office revenue peaked at $12 billion in 2018, but plummeted to just over $2 billion in 2020 as many movie theaters closed due to the pandemic.Since then , total box office revenue at the American box office has not exceeded $9 billion. CNN attributes this, in part, to the shift of many Americans to streaming services.

In January, Trump appointed actors Jon Voight, Mel Gibson and Sylvester Stallone as his "ambassadors" to "reclaim Hollywood, which has lost a lot of business to foreign competitors over the past four years."

ReadPIONERPRODUKT .by inTELEGRAM .