John Fraim

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(Above, one of my favorite photos I took while living in Palm Desert, California. The painting of Marilyn seen through the reflection with the street. Next door to a tailor shop. I know this part of Palm Desert as my mother took me down to the antique and consignment shops on this side road to Highway 111 running through Palm Desert. Marilyn was in one of my mother’s favorite consignment stores. And, what a better symbol than Marilyn for “Tariffs on Goods and Serivces.” Please excuse the rambling – somewhat – below. But I continue to add to this post. Sorry. It started as such a tiny post.)

Tariffs on Services

John Fraim

Tariffs have always applied to imported goods. This worked when the first tariffs were applied as most all trade was in goods. Yet today, besides goods, a nation also imports services. Should there be tariffs on the import of certain services? Do some service industries in America need protection from foreigners who cut prices drastically on services. Should Congress investigate this? Yet, even if looks into it, how does one track imported services in an increasingly global world? 

Most know that a tariff is a tax on certain goods. Yet what of the vast services industry and query whether services should be subject to tariff taxes to keep certain professional firms from our competitors out of the United States. Of course, this would be difficult to monitor this as many firms have global offices in several nations. Advertising companies, law firms, CPA firms, film companies, banks, management consultants, tech consultants. 

Yet, mostly, this importation of services would apply more to a non-global firm with perhaps one foreign office providing services just to the United States in competition with some major service industries. 

Besides professional firms above, there are many creative services outsourced to foreign production facilities. Some American studios have production facilities in foreign nations like China. 

* * *

Again, the tariffs going into effect are on imported goods. There will be several adjustments. One of the good things about tariffs: things can be fine-tuned on relatively micro levels unlike interest rates of the fed. 

When the dust begins to settle on the first few weeks of tariffs, I hope that question of service tariffs, with all the challenges of this type of tariff, be at least considered. The Trump policy is to bring manufacturing back to America. The big question is whether we need to bring back essential services to America or these to be imported?

Are American service companies being priced out of the market by foreign competitors that charge far less than the American company? Law, CPA, consulting, advertising, banking firms. In effect a Protective Service Tariffs (PST) might be the answer to protect key American service industries. If in fact it is important to protect them.

* * *

At the same time, might the situation be reversed where America is sending out many services to the world for free. Should there be export tariffs on these? 

For example, America is the greatest supplier of entertainment to the world. Should there be export tariffs imposed on the nations that buy entertainment programming from America?

* * *

Might AI be able to help figure out tariffs in the new economic tariff era the nation has entered? Interestingly, AI might value a wider range of imports or exports of nations considered by traditional means. 

In my book Battle of Symbols: Global Dynamics of Advertising, Entertainment and Media (Daimon Verlag, Zurich, 2004) I argued that America was the great exporter of soft symbols of power since the world could download American entertainment. Things have changed since this time of course. Yet the interesting question of charging nations of the world tariffs for importing American entertainment. 

One question is whether technology has the power to lock out nations from receiving American entertainment content. A tariff on the export of entertainment content to nations of the world. Now this is a new idea. America contributes a huge amount to entertainment content

Again, much more than goods are being imported. Rather, services in this new world. This whole area of services. Moving between nations – like entertainment – might also work to the administration’s rallying cry of bring manufacturing back. Might the same idea apply to the nation’s entertainment and film industry? Down much since the fire. No tariffs for film corporations located in America. Yet, is this a big incentive for them?

* * *

In military strategy there is hard and soft power. Hard power is war and weapons. Soft power is symbols and media. 

The hard power of America is well known.

Yet the soft power of America is less well known. In fact, it is largely invisible to most. An environment like the water of fish that so surrounds it that it gains invisibility. To throw some light on this invisibility was why I wrote my book Battle of Symbols. At that time, America was the greatest exporter of soft power to the world. Her TV programming and movies being spread all around the world. Not to mention American music and brand advertising. 

What are we talking about here? Putting a tariff on another nation’s importing American entertainment & sports into their nation? 

A tariff should be investigated on the production of entertainment products sent to nations of the world by America. While our nation might be importing goods from all over the world, it is also a distinct possibility America is the greatest exporter of entertainment products to other nations. 

* * *

The greatest exporter of soft products or cultural symbols.

Is this another area our nation is ripped off according to the President’s list of things we are ripped off in the world community about? He hasn’t mentioned a tariff on the exportation of American entertainment. Yet it is an interesting thing to consider.

Again, the basic idea here is that although the nation does not produce many hard goods it does supply the world with the greatest supply of soft goods in the form of entertainment, distraction, and amusement. Of course, the great book Amusing Ourselves to Death by media ecologist Neil Postman comes to mind here. America supplies the great soft power of amusement to the world. Yet, it collects no tariff on this? Not an expert here.

* * *

In other words, we export the greatest amount of entertainment content to nations of the world. Yet is there any tariff associated with this export? What is the tariff except a subscription to various TV channels in today’s global world. 

Everyone in the world can download American entertainment. Many from Musk’s satellites. Should the export of American entertainment be subject to a tariff? An important question as America is the largest exporter of soft cultural symbols. At the same time, it is also the largest importer of the hard goods of modern life.

The question is discussed in an excellent article in the 4/3/25 Deadline by Max Goldbart titled “How Donald Trump’s Trade Tariffs Will Hit The International Film & TV Biz.” Goldbart notes that the world is reeling from Donald Trump’s grand tariff announcement, which was positioned by the U.S. President as “liberation day.”

At the same time, Goldbart says, “Sources from the international sector have been getting in touch with concerns over what may happen to their ability to sell shows into the U.S., whether American production abroad will be stymied and the future of local streamer obligations, the latter of which have been feeling the heat of the Trump administration over the past few weeks.”

* * *

The article in Deadline covers a number of concerns regarding tariffs for import and export of film. Goldbart notes that “The good news is that it appears from early conversations that tariffs will not be specifically slapped on the production or sale of TV shows or movies into the U.S. These are services rather than goods, and producers and distributors have been telling us that their ability to sell to the States will not suddenly be dented.”

For those interested in reading the article, the full article is at …

https://deadline.com/2025/04/trump-tariffs-international-film-tv-industry-streaming-1236358130/.

What will be said about the Deadline article (and others arguing about film tariffs) is that we can’t let ourselves get into the weeds here, far off the old fairway of the big game, looking for lost things and waving other foursomes by. In effect, returning to the basic symbolism of tariffs in the idea of import and export into specific nations, states or even cities.

* * *

What are we really involved with here? These new things called Tariffs. It is likely that AI and modern technology will create a new rating for new ideas of what imported and exported items, services, goods, etc. are. In our world of global communications and media this has become a difficult question. 

Ultimately, one nation would likely import only essentials because of lack of domestic minerals or other elements in the earth of a nation. The surface political boundaries do not represent the subsurface. What minerals needed for future technologies are within this subsurface? One can be sure there is a pipeline of information on this. 

As usual, information of this type, gets to members of congress before the general public. Part of the talk to acquire Greenland involves these minerals. Part involves its strategic location. 

* * *

The old chessboard becomes 3D or even 5D and moves in an Albert Einsteinesque type of space. This is the chessboard the administration is playing on now. There is little linearity to daily activities of normal people. Rather, the news from the top of the Trump administration is like headlines in the British tabloids. But the British cannot keep up with the pace of news coming each day from the new administration.

Ultimately, whether import and/or export questions need to be placed on a table for all to see. Like something to be dissected? Like the chart Trump displayed at the announcement of the tariffs. 

* * *

Yet ultimately, the nature of imports/exports might change from physical goods to intellectual properties. Perhaps this change on defining imports and exports and service tariffs is overdue? 

Charts of the tariffs have been posted all over the Internet.

They offer a good argument for the imposition of tariffs in some form. I imagine. But in general it seems that America has nothing near the tariffs imposed on our products by other nations. In fact, as a general matter, the tariffs of the U.S. are only half that of other nations.

Tariffs have always applied to imported goods. This worked when the first tariffs were applied as most all trade was in goods. Yet today, besides goods, a nation also imports services. Should there be tariffs on the import of certain services? Do some service industries in America need protection from foreigners who cut prices drastically on services. Should Congress investigate this? Yet, even if looks into it, how does one track imported services in an increasingly global world?

Most know that a tariff is a tax on certain goods. Yet what of the vast services industry and query whether services should be subject to tariff taxes to keep certain professional firms from our competitors out of the United States. Of course, this would be difficult to monitor this as many firms have global offices in several nations. Advertising companies, law firms, CPA firms, film companies, banks, management consultants, tech consultants. 

Yet, mostly, this importation of services would apply more to a non-global firm with perhaps one foreign office providing services just to the United States in competition with some major service industries. 

Besides professional firms above, there are many creative services outsourced to foreign production facilities. Some American studios have production facilities in foreign nations like China. 

* * *

Again, the tariffs going into effect are on imported goods. There will be several adjustments. One of the good things about tariffs: things can be fine-tuned on relatively micro levels unlike interest rates of the fed. 

When the dust begins to settle on the first few weeks of tariffs, I hope that question of service tariffs, with all the challenges of this type of tariff, be at least considered. The Trump policy is to bring manufacturing back to America. The big question is whether we need to bring back essential services to America or these to be imported?

Are American service companies being priced out of the market by foreign competitors that charge far less than the American company? Law, CPA, consulting, advertising, banking firms. In effect a Protective Service Tariffs (PST) might be the answer to protect key American service industries. If in fact it is important to protect them.

* * *

At the same time, might the situation be reversed where America is sending out many services to the world for free. Should there be export tariffs on these? 

For example, America is the greatest supplier of entertainment to the world. Should there be export tariffs imposed on the nations that buy entertainment programming from America?

* * *

Might AI be able to help figure out tariffs in the new economic tariff era the nation has entered? Interestingly, AI might value a wider range of imports or exports of nations considered by traditional means.  

In my book Battle of Symbols: Global Dynamics of Advertising, Entertainment and Media (Daimon Verlag, Zurich, 2004) I argued that America was the great exporter of soft symbols of power since the world could download American entertainment. Things have changed since this time of course. Yet the interesting question of charging nations of the world tariffs for importing American entertainment. 

One question is whether technology has the power to lock out nations from receiving American entertainment content. A tariff on the export of entertainment content to nations of the world. Now this is a new idea. America contributes a huge amount to entertainment content

Again, much more than goods are being imported. Rather, services in this new world. This whole area of services. Moving between nations – like entertainment – might also work to the administration’s rallying cry of bring manufacturing back. Might the same idea apply to the nation’s entertainment and film industry? Down much since the fire. No tariffs for film corporations located in America. Yet, is this a big incentive for them?

* * *

In military strategy there is hard and soft power. Hard power is war and weapons. Soft power is symbols and media. 

The hard power of America is well known.

Yet the soft power of America is less well known. In fact, it is largely invisible to most. An environment like the water of fish that so surrounds it that it gains invisibility. To throw some light on this invisibility was why I wrote my book Battle of Symbols. At that time, America was the greatest exporter of soft power to the world. Her TV programming and movies being spread all around the world. Not to mention American music and brand advertising. 

What are we talking about here? Putting a tariff on another nation’s importing American entertainment & sports into their nation? 

* * *

A tariff should be investigated on the production of entertainment products sent to nations of the world by America. While our nation might be importing goods from all over the world, it is also a distinct possibility America is the greatest exporter of entertainment products to other nations. 

The greatest exporter of soft products or cultural symbols.

Is this another area our nation is ripped off according to the President’s list of things we are ripped off in the world community about? He hasn’t mentioned a tariff on the exportation of American entertainment. Yet it is an interesting thing to consider.

Again, the basic idea here is that although the nation does not produce many hard goods it does supply the world with the greatest supply of soft goods in the form of entertainment, distraction, and amusement. Of course, the great book Amusing Ourselves to Death by media ecologist Neil Postman comes to mind here. America supplies the great soft power of amusement to the world. Yet, it collects no tariff on this? Not an expert here.

* * *

In other words, we export the greatest amount of entertainment content to nations of the world. Yet is there any tariff associated with this export? What is the tariff except a subscription to various TV channels in today’s global world. 

Everyone in the world can download American entertainment. Many from Musk’s satellites. Should the export of American entertainment be subject to a tariff? An important question as America is the largest exporter of soft cultural symbols.

If one wants to locate an embedded reporter in the weeds of this all, there are few targets better than Elon Musk. Perhaps a large question out there to Musk today. As he begins to wind down his days as a government employee.

* * *

The question is whether there should/can be a tariff placed on the export of soft symbols such as entertainment products. It seems to be a straightforwoard question. What about the photo of Marilyn in this post? How does this fall into the ecosystem of all this?

Again, about the export of American symbols to nations around the globe.

Has the export of American symbols around the globe ever been equalized with the importation of any other system?