Paper: GS – II, Subject: International Relations, Topic: Global issues, Issue: Implications of U.S. tariffs.
Context:
US President Donald Trump announced a 100% tariff on film imports which raised debate on cultural trade, globalization of media, and protectionism.
Key Highlights:
Issues with the Tariffs:
1. Definition Problem – What is “Made in USA”: Modern film production is internationally integrated. For example, Avengers shot in multiple countries such as Georgia, UK, Scotland, India, Canada etc.
2. Tariff Collection Challenges: Movies are digitally delivered, not through customs. Rise of Streaming platforms such as Netflix, YouTube and subscription-based content further complicate tariff levy.
3. Global Film Pipelines: Borderless filmmaking allows studios to save millions in costs and access international talent & tax incentives. For example, VFX shots are usually outsourced to India & Canada.
Impact of Tariff:

Conclusion:
The recent tariff risks undermining Hollywood’s global dominance. In a borderless creative economy, protectionist measures may backfire. Cultural industries thrive on openness; over-protection may lead to loss of competitiveness.
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