On Monday, Hollywood responded with doubt to U.S. President Donald Trump's declaration of 100 percent tariffs on movies from abroad. Industry experts characterized this as a hastily conceived policy crafted by a president who does not grasp the mechanics of the film business.
"There is no logic in this," entertainment lawyer Jonathan Handel commented about Trump's proposal.
Handel pointed out that numerous U.S. productions, including James Bond movies and the "Mission Impossible" series, are shot overseas due to clear artistic advantages.
If the stunt involves Tom Cruise scaling the Eiffel Tower, should we instead aim for a replica of the Eiffel Tower in Las Vegas?" Handel asked. "It seems completely irrational.
On his platform Truth Social, Trump announced: "I am instructing the Department of Commerce and the U.S. Trade Representative to start the process right away for imposing a 100% tariff on every movie entering our country that is made abroad."
Trump added: "WE WANT MOVIES MADE IN AMERICA, AGAIN!"
His statements threw the film sector into turmoil, with entertainment firms experiencing a decline in their share values. Unions found themselves grappling with whether this shock announcement would affect television shows too, and all were left pondering the feasibility of implementing such policies.
Handel observed that movies encompass intellectual property.
"You can buy a movie ticket, but you don't buy a movie the way you buy a piece of clothing or an automobile," which can be taxed as they cross a border into the United States, he said.
Even if a mechanism were created to impose taxes on movies produced outside the United States, these charges would likely cause more damage than benefit to the American film sector, the attorney noted additionally.
Handel contended that the outcome would lead to decreased production, higher movie costs, fewer films being made available for both movie theatres and streaming platforms, thereby harming the distribution aspect of the industry.
- 'Confusion' -
Unions representing actors and other media and entertainment professionals stated that they were waiting for further information about Trump's proposal but endorsed the aim of boosting movie, television, and streaming content creation within the United States.
One such guild, SAG-AFTRA, stated that we will keep pushing for policies aimed at bolstering our competitive edge, speeding up economic expansion, and generating quality middle-class employment opportunities for American workers.
Numerous film studios and various industry groups hadn't formally responded as of Monday, though Trump’s statement prompted emergency discussions, according to reports from entertainment news sources in Hollywood. These reports included doubtful remarks from those inside the industry who chose to remain unnamed.
"The only objective I can discern here seems to be causing confusion and distraction," said a prominent distribution exec according toDeadline, a leading entertainment news source.
"Let's hope this only encourages desperately needed increases in US state tax incentives being implemented ASAP," that person added.
Such incentives offered by other countries -- like Britain, Canada and Ireland, among others -- are a lure for US movie studios to film outside the country.
Although Trump's concept has caused division, there is broad consensus that the American film industry is facing significant challenges.
Following the landmark strikes by actors and writers that brought it to a halt in 2023, Hollywood has found itself grappling with recovery ever since.
In Los Angeles, the number of filming days hit a record low in 2024, if one excludes the total shutdown in 2020 because of the Covid pandemic.
This is partly due to the increasing number of countries offering incentives like tax breaks for filming movies.
Deadline cited a Hollywood film producer who mentioned that he concurs with Trump’s aim of increasing domestic movie production within the United States.
"However, clearly what’s needed are rebates rather than tariffs. Imposing tariffs would merely strangle the last bit of vitality from the industry," was their reported statement.
As Hollywood was concerned about Trump's statement, the White House mentioned that no choice regarding foreign film tariffs had been finalized yet.
The Administration is examining every possibility to fulfill President Trump's mandate for protecting our nation’s national and economic security as part of the effort to Make Hollywood Great Again,” stated the White House.
On Monday, Trump informed journalists, “My aim isn’t to harm the industry; rather, my intention is to support it. However, these companies receive financial backing from other nations.”
The somewhat reconciliatory statement did not retract the film tariff announcement, as Trump critiqued California Governor Gavin Newsom, who aims to increase the state’s tax credits for the movie sector twofold.
"The movie industry has been devastated by other nations undercutting them and due to ineptitude," Trump stated, criticizing Newsom.
He simply let it slip out of the grasp of Hollywood,
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