Proposed Film Tariff Is A Non-Starter

3D illustration of a rubber stamp with the word tariff stamped on paper background. Concept of taxes … More or duties on imported goods.

getty

This is just a quick note to assure Hollywood that the proposed tariffs on films produced outside the U.S. is a non-starter for a whole lot of reasons, so no need to cogitate on it:
1. Films are now delivered digitally, so the proposal violates the World Trade Organization moratorium on tariffs on digital transmissions, which has been in effect and repeatedly renewed for twenty-seven years.
2. Tariffs are designed to be collected on physical goods crossing a border, not digital transmissions.
3. Any attempt to do it would have to be implemented as a digital tax (as in Europe), which would require an act of Congress.
4. It is utterly unworkable.
5. It would bankrupt all the U.S. studios (since they produce so many big-budget films outside the U.S.), so it would eliminate a shining example of where the U.S. has a trade surplus.
So we can all relax.

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