[DeusExMachina]

Since it's about movies produced overseas, I don't think the nationality of the actors or the overseas revenue counts.

But it probaby counts that it was shot in the UK. The reason why Disney does that is because they get tax breaks from the UK government, which I think it's what Trump is referring to.

[dom96]

So let me get this straight... he's not happy with the UK because of VAT (value added tax) and he's also not happy with the UK because of tax breaks?

Amazing.

[JCharante]

I think there's a big difference between VAT for consumer goods and cities providing big incentives for filming there. I'm not giving an opinion on whether they're good or bad, just saying that they're very different and I don't think they should be compared.

[kjksf]

Both are harming US jobs.

VAT is bad for US because a car made in US is 22% more expensive when sold in UK than a car made in UK sold in US. VAT makes it harder for US car company to sell in UK. It reduces number of US jobs making cars.

UK giving tax breaks to US companies also reduces number of US jobs because a catering business in Los Angeles loses a job to a catering business in London. So does a carpenter, an extra etc.

It's all simple to understand, consistent and frankly very leftist.

[lentil_soup]

> VAT makes it harder for US car company to sell in UK. It reduces number of US jobs making cars.

that makes no sense.

Assuming the same amount of cars sold, with or without VAT the amount of US jobs making cars would stay the same. VAT is applied to any car regardless of origin it's not harder or easier for anyone.

[tzs]

> VAT is bad for US because a car made in US is 22% more expensive when sold in UK than a car made in UK sold in US.

But a UK car sold in the UK is also 22% more expensive than a UK car sold in the US (I'm going to overlook that you've completely overlooked sales taxes in the US).

[beAbU]

Do you not have sales taxes in the US?

[HelloNurse]

There will be exceptions and loopholes for friends, like e.g. for Tesla cars.

[Justsignedup]

This. This is it.

Now Disney will have to bow down and kiss the ring or their us incomes will fail. Make it too expensive to not bow down.

That's how this works. I'll make doing business too painful for you unless you cater to my will. So surrender.

Well......... Let's see if the gambit will pay off.

[jaimebuelta]

The overseas revenue is important as companies will need to prioritise markets. They don’t want to choose, but if they have to, they’ll prefer to keep 60% of the revenue over 40%. Assuming some sort of reciprocal actions, the risk is making Hollywood “less American”.

[DeusExMachina]

Reciprocal actions are not going to affect the whole 60%.

I assume there are very few locations like the UK that are going to be significantly hit by the tarifs and might react with countermeasures that will affect only a small part of the overseas revenue.