Why maybe Trump’s plans will not be for the definitions of foreign films a happy ending

Thanks to definition policies, the administration of US President Donald Trump aims to correct the constant deficit in the country’s merchandise trade. President Argue The United States has been looted by other countries. Trump feels that now “turns to prosperity” for America – he has the cinema and television industries in his eyes 100 % tariff threats On foreign films.

Economists are But there is a more fundamental problem, which is noticeable in the case of film and television industries. Although commercial data reflects the general performance of the country, it does not say anything about the nature and ownership of the traded goods.

In fact, the activities of the US -based multinational companies and foreign investment are the headquarters of the US trade deficit. World trade flows in movies and television are a good example.

With regard to the origin of the film, it is determined by factors that include the nationality of those in the main creative roles, financing, the location of photography and culture reflected in the subject and the story. The United States has always been the largest exporter of films and television in the world, dominating global media flows throughout the twentieth century.

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In the 1970s, the country was exported Seven times The extent is cinematic and television programming in its nearest rival (UK). Three decades later, the United States was still exporting 4.5 times The amount of the imported content – 12.6 billion US dollars (9.4 billion pounds) for $ 2.8 billion.

American exports have increased, reached 24.7 billion US dollars in 2023Hollywood is still the world’s largest film. However, the American trade balance in the sector has dramatically. While US exports grew 95.4 % between 2006 and 2023, American imports 898 % increased.

Trade in cinematic and television programming achieved a balance in 2019, and my research shows that since then, the United States More imported Films and TV programs are more than exporting them. The deficit was narrowed in 2023, but imports Stay 12.1 % higher Exports ($ 27.7 billion for $ 24.3 billion).

This deficit deserves an explanation. Are Asian and European producers suddenly overwhelm the United States with movies and TV programs? Did the American public developed an indelible appetite for Nordic Noir or K-Drama? The fact is that the US -based media blocs such as Disney, Netflix and Warner Bros Discovery have changed the strategy. They moved away from their previous focus on exports to the direct international distribution of the consumer.

What does this mean? Well, instead of licensing content for foreign broadcasters and cinemas (still do so, but to a lesser extent), they sell their content at the international level, using their global broadcasting services.

American entertainment paradox

Maintaining these large content libraries explains the transformation of the American trade balance. US -based banners are making less export because they now maintain more of their exclusive distribution content on their broadcast platforms. They import more because they acquire foreign content in greater quantities than ever.

For example, strange things are produced by Netflix in the United States. As such, it does not appear in the export numbers. The squid game, on the other hand, is a Korean export and appears in US import data.

Moreover, Walt Disney decided to retain exclusive rights for her privileges, which abandoned licensing sales. In 2020, The company is licensed 59 % of the written text chain to third parties, 18 % in 2021, and only 2 % in 2022.

All US flow giants and foreign content. We spent Netflix in particular more on International content From American programming since 2024 ($ 7.9 billion for $ 7.5 billion). Hence the creation of a paradox: American trade data In Audiovual Services reveals a commercial deficit, but the US -based entertainment industry was not dominant worldwide.

There are similar patterns in the industries in which multinational companies in the United States are located at the top of the national supply chains. The jeans imported by Levi Strauss from Bangladesh, trainers who import from Nike from Vietnam, and the Ford car components import from Brazil all in American trade statistics. But these goods are, mainly, the assets owned by Americans.

on 70 % of trade Global value chains (GVC) include, where raw materials and components cross the boundaries several times before assembled in a final product.

In the global economy today, the complexity of most products from companies requires cooperation with throughout national production networks. Since companies and countries specialize in specific tasks, GVCS is the most effective way to produce goods and services. The broadcasting industry simply reflects these broader patterns.

Knowing the American trade deficit in films and TV programs, Trump announced his plans 100 % definitions On all films produced outside the United States. However, his attempt to “make Hollywood great again” is misleading.

While Hollywood has new competitors to confront it, especially South Korea, it remains the largest source of films and television in the world. After a short period of decline in late 2010, American exports continued to grow to reach a Register 24.3 billion US dollars.

For Trump, a disturbing issue is that the United States imports more films and TV shows more than its exports. But this is due to the storage of foreign platforms in the United States. Adolescence and squash game have already contributed to extending the gap between American imports and exports, but they are assets owned by the United States that have received hundreds of millions of dollars in subscription fees. (Houfa game Netflix effect value It was estimated at $ 891 million in 2021.)

The American content of broadcasting giants in the United States does not appear in trade data. The whole world watches Black Mirror and Ransom Canyon, but this series has never been exported. Instead, it is on a global platform (Netflix). The US -based media blocs were never dominant in the global media market.

In short, commercial data does not tell the entire story. If implemented, these definitions will certainly be long -term consequences for filmmaking and television. But it is unlikely to make anyone more prosperous.