Following President Trump's proposal to implement a 100 percent tariff on foreign films, the Information Technology and Innovation Foundation (ITIF) has expressed concerns about the potential negative impact on U.S. creative exports. The ITIF, a prominent think tank focused on science and technology policy, issued a statement from Rodrigo Balbontin, associate director for trade, IP, and digital technology governance.
Balbontin stated that "President Trump's idea to impose a 100% tariff on all foreign films will undermine the U.S. film industry and open the gate for retaliation on all digital services." He highlighted that tariffs on foreign movies could lead to unprecedented tariffs on services, posing risks to America's global trade surplus in services like films and TV.
The United States is known for its strong position in exporting digital services due to its robust digital economy. Expanding trade conflicts into this sector could threaten American creativity, innovations, and specialized knowledge.
Instead of resorting to tariffs, Balbontin suggested that the Trump administration should focus on reinforcing copyright protection as a means to protect America's film industry. He proposed that Congress pass legislation to block foreign piracy websites that harm U.S. creative industries. According to Balbontin, this approach has been effective in at least 50 countries by reducing piracy and increasing legal content consumption.
Furthermore, he emphasized the importance of insisting on stronger intellectual property protections with countries currently negotiating over these proposed tariffs.
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