Hollywood has expressed skepticism regarding US President Donald Trump’s announcement of 100% tariffs on foreign films, with industry insiders describing it as a hastily conceived policy from a president who seems to lack understanding of how the film sector operates.
“It makes no sense,” commented entertainment lawyer Jonathan Handel on Mr. Trump’s proposal.
Mr. Handel pointed out that numerous US productions, including iconic franchises like James Bond and “Mission Impossible,” are filmed abroad for clear creative reasons.
“If the stunt is Tom Cruise climbing up the Eiffel Tower, what are we supposed to do, shoot at the replica Eiffel Tower in Las Vegas?” Mr. Handel noted. “It’s just nonsensical.”
Mr. Trump proclaimed: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Watch: Donald Trump states ‘other nations are stealing movie-making capability’ from the US
His comments plunged the film industry into uncertainty, causing entertainment companies to see their stock prices fall, unions to grapple with the implications for TV series, and everyone to wonder how enforceable the policy could be.
Mr. Handel emphasized that movies revolve around intellectual property.
“You can buy a movie ticket, but you don’t purchase a movie like you would a piece of clothing or a car,” which can be subject to taxes as they move into the United States, he explained.
Even if a system could be developed to impose tariffs on films produced outside the US, such levies would likely harm the US industry more than help it, the lawyer argued.
“The outcome would be reduced production, increased movie costs, and fewer films available for theaters and streaming services, ultimately damaging the distribution aspect of the business,” Mr. Handel insisted.
‘Confusion’
Unions representing actors and various media and entertainment professionals stated they were awaiting additional details regarding Mr. Trump’s proposal but supported the intention to boost production of films, television, and streaming in the United States.
“We will continue advocating for policies that enhance our competitive position, accelerate economic growth, and create quality middle-class jobs for American workers,” remarked SAG-AFTRA, one such guild.
Although many movie studios and industry organizations have yet to officially comment, Mr. Trump’s announcement sparked emergency meetings, with Hollywood press outlets reporting skeptical remarks from insiders who chose to remain anonymous.
“I can’t identify his target other than confusion and distraction,” a senior distribution executive expressed to the entertainment news outlet Deadline.
“Let’s hope this only leads to urgently needed increases in state tax incentives in the US being implemented sooner,” the individual added.
Such incentives offered by other nations, including Ireland, Britain, and Canada, attract US movie studios to film outside the country.
Irish producer Stephen Hall noted that Mr. Trump’s call for a 100% tariff on films made abroad was “deliberately timed.”
He remarked that the announcement is “probably intended to instigate a bit of panic.”
As the producer of the fantasy series ‘The Wayfinders,’ he expressed skepticism about how a 100% tariff could function.
However, he did acknowledge that there is “absolutely less work in Hollywood.”
While Mr. Trump’s proposal is contentious, there is a broad consensus that the US film industry is facing significant challenges.
Following the historic strikes by actors and writers that brought Hollywood to a halt in 2023, the industry has struggled to regain its footing.
In Los Angeles, the number of filming days reached a record low in 2024, excluding the total shutdown of 2020 due to the Covid pandemic.
This decline is partly due to the increasing number of movies being filmed in various countries that offer attractive incentives such as tax rebates.
Deadline reported a Hollywood film financier expressing agreement with Mr. Trump’s goal of increasing domestic film production.
“But clearly, the focus should be on rebates, not tariffs. Tariffs will only suffocate the remaining vitality of the business,” they were quoted as saying.
As Hollywood grappled with Mr. Trump’s announcement, the White House clarified that no decision on foreign film tariffs has been finalized.
“The Administration is exploring all options to deliver on President Trump’s directive to protect our country’s national and economic security while Making Hollywood Great Again,” the White House stated in a release.
More: Why it’s cheaper to film in Ireland than Los Angeles (for now)
