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U.S. Considers Movie Tariffs Under Section 232 for National Security, Impacting Services Trade Surplus with China

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Published May 5, 2025, 02:54 AM

The U.S. is considering imposing tariffs on movies under Section 232, which allows for tariffs on imports for national security reasons. This proposal marks a departure from historical trade policies as the country has not previously tariffed services or intangibles like films. The International Emergency Economic Powers Act (IEEPA) cannot be used to regulate the import or export of movies, necessitating the use of Section 232.

Skepticism surrounds the feasibility and wisdom of these tariffs. Movies, being services rather than physical goods, do not typically pass through customs and thus cannot be tariffed in the traditional sense. Concerns have been raised about the potential impact on the U.S. services trade surplus, particularly with China, and the precedent this could set for other service industries.

Questions remain about the application of these tariffs, including whether they would affect films shot partially abroad or only foreign-produced films. Such tariffs could lead to higher ticket prices for consumers and might be better classified as a tax rather than a tariff.

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Sources

Dr. Saskia Popescu

@SaskiaPopescu

FWIW - productions filming overseas is not a national security issue. It’s representative of bigger, systemic issues w/in an industry struggling since COVID. 100% tariffs won’t fix that & would likely worsen things. You know what is a nat-sec issue? Global health security…let’s

Stephen Kent

@StephenKentX

100% tariffs on movies produced abroad….so does that mean Star Wars (1977) that filmed in the UK? Does this mean when 40% is shot in Spain for its mountains? Edited in Japan but only financed in Hollywood? Going abroad is largely an escape from blue state problems.

Hans Mahncke

@HansMahncke

Tariffs on services open a whole new can of worms—and not in a good way. The U.S. runs a massive trade surplus in services. I'm all for breaking stuff, but this one feels like they didn’t think it through. https://t.co/jbSHSWl6OT

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