Economist Peter Schiff criticized President Donald Trump‘s proposed 100% tariff on foreign-produced movies, questioning its implementation and suggesting that Netflix Inc. (NASDAQ:NFLX) subscribers would ultimately bear the cost.
What Happened: “Today Trump announced a 100% tariff on movies produced outside of the United States. But movies aren’t physical goods that come across the border in a way that a tariff can be applied,” Schiff wrote Sunday on X. “This would be some new kind of federal excise tax on Americans who watch movies filmed abroad.”
When a user on X suggested the tariff would only apply to physical DVDs, Schiff responded, “There are very few of those these days… I think it’s meant to apply to theatrical releases and streaming services too. Otherwise it’s pointless.” He added that if Netflix collects the tax, “It’s paid by Netflix subscribers.”
Trump announced the measure on his Truth Social platform Sunday, calling foreign film incentives “a concerted effort by other Nations and, therefore, a National Security threat.”
See Also: Behind The Empty Docks: How Trump’s 145% Tariffs Are Gutting U.S. Supply Chains
Why It Matters: The policy comes as Netflix co-CEO Ted Sarandos recently claimed the streaming giant “saved Hollywood” while acknowledging the traditional theater experience might be “outmoded” for many viewers.
The proposed tariff follows Trump’s January appointment of actors Jon Voight, Sylvester Stallone and Mel Gibson to revitalize Hollywood, Reuters reported. Film production has increasingly moved overseas to locations offering tax incentives, with about half of high-budget projects filming outside the U.S. in 2023, according to research firm ProdPro.
Critics warn that retaliatory measures could harm U.S. interests. “The retaliation will kill our industry. We have a lot more to lose than to gain,” said William Reinsch, former senior Commerce official and Center for Strategic and International Studies fellow, according to Reuters.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
