Hollywood criticized US President Donald Trump’s announcement of 100 percent tariffs on foreign films on Monday, calling it a rash decision by a president who doesn’t understand how the industry operates.
Jonathan Handel, an attorney specializing in entertainment, described Trump’s idea as “making no sense.”
Handel told AFP that many US productions, including James Bond movies and the “Mission Impossible” franchise, were filmed abroad for obvious creative reasons.
What should we shoot at the replica of the Eiffel Tower in Las Vegas if Tom Cruise is performing the stunt of climbing up the tower? said Handel.
Trump stated on his Truth Social platform on Sunday that he authorized the US Trade Representative and the Department of Commerce to immediately impose a 100 percent tariff on any and all foreign-produced movies entering our nation.
“WE WANT MOVIES AGAIN TO BE MADE IN AMERICA”! he wrote.
His words caused uncertainty in the film industry as stock prices fell for entertainment companies, unions struggled to understand whether the bombshell also applies to TV shows, and everyone wondered if the policy could even be put to use.
Also read: Former Vice President Pence warns that Trump’s tariffs could cause US shortages.
According to Handel, movies are intellectual property.
As they enter the United States via a border, they may be taxed on a movie ticket, but they don’t buy it the same way they do a piece of clothing or an automobile.
According to Handel, “These levies would do more harm than good to the US industry,” even if a system could be created to impose tariffs on movies filmed outside of the country.
The result of that would be to lower production, lower movie prices, and lower the number of movies available for streaming services, he said, which would hurt the company’s distribution side.
Governor Gavin Newsom of California called on Monday to work with the Trump administration to “Make America Film Again.”
“We have demonstrated the value of robust state incentives. He wrote on the social media platform X that “it’s time for a real federal partnership to make America film again.”  ,
‘Confusion’
The goal of increasing the production of movies, TV, and streaming in the United States was discussed by unions for actors and other media and entertainment workers.
One such guild, SAG-AFTRA, stated that “we will continue to support policies that strengthen our competitive position, accelerate economic growth, and provide American workers with good middle-class jobs.”
Many film studios and other industry bodies had to wait until Monday to officially respond, but Trump’s announcement reportedly sparked crisis discussions, according to Hollywood media outlets, which led to skeptical comments from insiders who spoke on condition of anonymity.
A top distribution executive’s statement was quoted by a showbiz news outlet as saying, “I can’t see his target here other than confusion and distraction.“
Let’s hope this only encourages the person who questioned whether immediate increases in US state tax incentives are necessary.
US movie studios are drawn to foreign films thanks to incentives offered by other nations like Britain, Canada, and Ireland, among others.
Australia, which has long drawn foreign filmmakers to its tax breaks and other cash incentives, said it still wants to produce “great movies” with the United States.
Read more about PwC’s plans to cut about 1,500 jobs in the US.
Australian Foreign Minister, Penny Wong, said on Tuesday that “collaboration is a good thing” in light of Trump’s tariffs, which are threatening the home of Hollywood classics like “The Matrix,” “Elvis,” and “Crocodile Dundee.”
Despite Trump’s divisive idea, there is widespread consensus that the US film industry is in crisis.
Since the historic outbursts by actors and writers that ended it in 2023, Hollywood has struggled to recover.
Without the Covid pandemic, Los Angeles’ total shutdown in 2020 was at a record low in 2024, which included the record-breaking number of filming days there.
This is in part due to the increasing number of nations that offer incentives like tax breaks, among others.
Hollywood film financier, who was quoted by Deadline, claimed that he supported Trump’s plan to have more movies filmed in the US.
“But rebates, not tariffs, are obviously necessary. They were quoted as saying, “Tariffs will just choke the remaining life out of the business.”
The White House claimed that no decisions on foreign film tariffs had been made as Hollywood fretted over Trump’s announcement.
The White House stated in a statement that the administration is “exploring all options” to fulfill President Trump’s request to safeguard our nation’s economic and national security while restoring Hollywood.
Trump asserted to reporters on Monday that he wasn’t trying to hurt the sector. I want to support the sector. However, other nations fund them.
Trump criticized Newsom for pushing for his state to double the tax credits it grants to the movie industry, but that seemingly conciliatory comment fell short of backlash.
Source: Channels TV
Leave a Reply