US President Donald Trump has said in an official manner that he will hit movies made in foreign countries with 100% tariffs, as part of the ongoing trade war he has initiated with nations around the world. According to Trump, the US Department of Commerce and Trade will begin the levy of 100% tax, which essentially doubles the cost of releasing a foreign film in USA.
What this means for Indian, & in turn Tamil movies releasing in USA?
To combat the cost of releasing their movie in USA, stakeholders i.e. the producers, distributors, and exhibitors, will end up increasing the ticket price to double its current selling cost too.
The only other solution is grass-root, and requires movie stars to drastically reduce their take-home salary, inturn bringing down the production cost of a movie. However it is doubtful if such measures would be taken for the sake of an obstacle in one specific overseas region release.
Intent Behind Trump's 100% Tarrifs
It is worth mentioning here that Trump's 100% tariffs on foreign and foreign-made films releasing in USA, is a countermove to China's recent reduction of U.S. film imports, and new tariffs on Chinese goods. The US president also aims to retain American filmmaking to Hollywood with his current move.
Trump has stated that American filmmakers and production studios being incentivized by other countries into making movies in their locations, as opposed to USA, is a "National Security threat". Trump's statement seems to be a jibe the UK and Canada, where for years American movies have been made in search of lower costs.