Politico Nightly has a very interesting observation tied to Trump’s latest fever-dream about a tariff on movies produced outside the United States. Studios are spooked about it and the idea even pushed down entertainment stocks. (As I’ve noted a few times, the current hiatus on the law mattering has a lot of people jumpy.) I’m pretty sure this is yet another idea the President more or less randomly came up with on his own. There are a few problems with it, not the least of which is that movies aren’t physical goods. They are intellectual property. To put it in different terms you might put a tariff on physical books produced in the Philippines and shipped on a boat to the US. But you couldn’t easily put a tariff on the ideas in the book or the text itself. I actually heard in one conversation that there is a specific law preventing any effort to place tariffs on intellectual property in this way. Regardless of all that, the Politico Nightly piece makes a different and really interesting point. It’s been widely discussed that the notional statutory basis of all Trump’s tariffs is quite weak. There’s a small business lawsuit challenging them which is backed by Koch and Leonard Leo-funded groups, interestingly enough. There’s also a state attorneys general challenge. There have been recent signs that the court is question is looking very seriously at this challenge. And Politico notes that a threatened movie tariff, based on the same weak statutory basis and now claiming a national security threat based on “imported” movies might be flaunting the legal absurdity of the President’s actions at just the wrong time.
