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With 100% tariffs on ‘all movies made outside US’, Trump expands tariff net to digitally delivered services
['Anish Mondal', 'Ravi Dutta Mishra', 'Ravi Dutta Mishra Is A Principal Correspondent With The Indian Express', 'Covering Policy Issues Related To Trade', 'Commerce', 'Banking. He Has Over Five Years Of Experience', 'Has Previously Worked With Mint', 'Other News Outlets.', '... Read More', 'Cdata']
The Indian Express
When implemented, this will be the first instance of a US tariff on cross-border delivery of services.
Experts said that the tariffs on foreign-made movies qualify as a digitally delivered service, as film theatres traditionally used 35mm film prints that were physically transported to individual theatres and screened using projectors.
Traditional projectors using film prints have now been replaced across most screens by DCPs or digital cinema packages, and thus, theatrical distribution of films across borders is now a digitally delivered service.
Story continues below this ad“This is especially true of digitally delivered services.
Experts said tariffs on movies also violate binding US multilateral commitments under the General Agreement on Trade in Services (GATS).