UNMISTAKABLY, DONALD TRUMP’S OBSESSION WITH IMPOSING TAXES TANTAMOUNTS TO SELF-GOAL!

• President of the USA, Donald Trump’s ranting and subsequent actions about the import taxes have not only succeeded in disturbing global trade of different hues but also have unleashed a wave of reciprocal tariffs from the affected countries, like China, further exacerbating the already tense situation on the ground. Of course, Trump also introduced, paused, reintroduced, and set fresh deadlines for the taxes to take effect on products imported into America. Despite the economic experts, acclaimed businessmen, big tech companies, and fiscal advisers cautioning the maverick President from pressing ahead with his moves, the leader has followed his announcements with even more tariff measures that will eventually prove to be counterproductive.

PC: Material Handling and Logistics

• As you are aware, Trump did the unthinkable recently by imposing a 100% tariff on non-US films, placing the celebrated Hollywood in a creative Alcatraz. For the uninitiated, America closed down its securest prison, Alcatraz, in 1963, less than a year after three men escaped from it. The decision was based on cost, not hurt pride. Notably, Alcatraz then became a tourist hangout and the setting of some popular films, including 1979’s Escape From Alcatraz. Recollect how back then, Hollywood could spot a good story, tell/make it well, and rake in millions. That’s how Hollywood became the world’s biggest and most powerful film industry. So much so that only twice in the past 50 years has a non-American film topped the global box office.

PC: Outlook Business

• Note how in January, Trump announced about making Hollywood bigger, better, and stronger. And this move now will put paid to his grandiose announcement plans coming a cropper. He followed by declaring Alcatraz would be turned into a prison again, followed by slapping a 100% tariff on any movies coming into America that are produced in foreign lands. Indeed, the order isn’t surprising because tariffing is Trump’s answer to all of America’s economic woes. But it’s odd because films aren’t goods, you see. They are like software and services that earn billions of tariff-free dollars for India. Will he tariff services next? Yes, India’s Global Capability Centers might be worried. The film industry certainly is. Why? Let’s dwelve deep to comprehend the same.

PC: Times of India

Hindi, Telugu, and Tamil films have raked in millions of dollars over the past several years, but with Trump’s typically vague diktat, the cost to US distributors could double. There’s no clarity on what produced in foreign lands means. If part of a Hollywood film is shot abroad, is it American or foreign? Does the order also apply to films and series made for OTTs? Hollywood has declined as only 20% of American films and TV shows are made there now, and big-name films regularly bomb. Rivalry within and from overseas destinations to make films and shows by wooing American studios with lower costs is a fact. The US will lose big if other countries also impose tariffs on its films. Trump should come out of his myopic thinking by showing prudence sooner than later.