The Impact of Tariffs on the Art Industry

Written by Steven Goldglit, CPA LMC Partner, Art Practice

With recent changes in trade policy and the increased use of tariffs, many in the art industry are asking an important question: Could these developments impact the import or export of artworks?

The short answer is—there’s a legal safeguard in place that may offer protection. A provision under the Trading with the Enemy Act (TWEA), specifically 50 USC § 1702(b), provides a key exemption that helps shield most artworks from trade restrictions, even during national emergencies.

What Is 50 USC § 1702(b)?

This statute gives the President broad powers to regulate imports and exports during declared emergencies. However, it includes an important exemption for informational materials, which encompasses a wide range of artworks and cultural products.

What’s Covered?

While the law does not define “artwork” in detail, the exemption generally applies to:

• Paintings, drawings and sculptures
• Photographs and cultural objects
• Publications, films, posters and records

These items are considered protected forms of free expression and are typically excluded from trade bans and tariffs under this law.

What About Digital or Performance Art?

There is still some uncertainty when it comes to non-traditional formats, such as:

• Digital art and NFTs
• Performance-based or interactive works

These areas are not explicitly addressed in the statute, which has led to ongoing conversations in the legal and art communities. At LMC, we are monitoring this closely and will share updates as more clarity emerges.

Looking Ahead

As trade rules evolve, it’s essential to understand how they may impact art collections, transactions, or exhibitions. LMC is here to help interpret complex regulations and ensure that our clients’ interests are protected.

If there are specific concerns about how these issues may affect a specific art-related activity, please contact your LMC advisor for guidance.