Hollywood Reacts to Trump's Proposed Tariffs on Foreign Film Productions
The film industry expresses skepticism over a potential 100% tariff on movies produced outside the United States.
LOS ÁNGELES, UNITED STATES.
Hollywood has expressed skepticism following President Donald Trump's announcement to impose a 100% tariff on films produced outside of the United States, a proposal that industry experts consider counterproductive.
Entertainment attorney Jonathan Handel remarked, 'It makes no sense' in response to the proposed tariffs.
He cited practical challenges by stating, 'If a stunt requires Tom Cruise to scale the Eiffel Tower, what are we supposed to do?
Film it in the replica of the Eiffel Tower in Las Vegas?
It makes no sense.' Handel highlighted that blockbusters such as 'Mission Impossible' are filmed abroad for artistic reasons.
In a message on the social media platform Truth Social, Trump urged the Department of Commerce to 'immediately begin the process of instituting a 100% tariff on any movie that arrives in our country that is produced overseas.' Trump further asserted, 'We want movies made in the USA, again!'
Howard Lutnick, the Secretary of Commerce, responded on social media, stating, 'We are on it.' While the White House did not clarify how this tax would be applied to productions, many films are digitally shot and transferred online or through memory units, raising logistical concerns.
Handel commented on the issue of intellectual property, clarifying, 'You can buy a movie ticket, but you cannot purchase a movie in the same way you buy a piece of clothing or a car.'
The president's remarks come at a time when Hollywood is struggling to return to its former glory and dominance.
Los Angeles remains the entertainment capital of the United States; however, it recorded a historic low in filming days last year.
The industry was severely impacted by the COVID-19 pandemic and subsequently by strikes from writers and actors that nearly halted productions in 2023.
Additionally, numerous productions have migrated to other states and countries, taking advantage of tax incentives and economic opportunities, as well as creative considerations.
Earlier this year, Netflix announced a $1 billion investment in Mexico aimed at developing films and television programs over four years.
Some industry voices view the idea of attracting more productions back to the U.S. positively.
An anonymous investor stated, 'I actually agree with the goal, and I believe many film executives would too.
It's outrageous how many productions have moved abroad due to the lack of exemptions here.
But obviously what is needed are exemptions, not tariffs.
Tariffs would choke what's left of the business.'
In light of this uncertainty, studios convened emergency meetings on Monday to address the situation, according to American media reports.
The White House stated that no final decisions had been made, with spokesperson Kush Desai noting, 'The administration is exploring all options to implement the President's order.'
Hollywood has expressed skepticism following President Donald Trump's announcement to impose a 100% tariff on films produced outside of the United States, a proposal that industry experts consider counterproductive.
Entertainment attorney Jonathan Handel remarked, 'It makes no sense' in response to the proposed tariffs.
He cited practical challenges by stating, 'If a stunt requires Tom Cruise to scale the Eiffel Tower, what are we supposed to do?
Film it in the replica of the Eiffel Tower in Las Vegas?
It makes no sense.' Handel highlighted that blockbusters such as 'Mission Impossible' are filmed abroad for artistic reasons.
In a message on the social media platform Truth Social, Trump urged the Department of Commerce to 'immediately begin the process of instituting a 100% tariff on any movie that arrives in our country that is produced overseas.' Trump further asserted, 'We want movies made in the USA, again!'
Howard Lutnick, the Secretary of Commerce, responded on social media, stating, 'We are on it.' While the White House did not clarify how this tax would be applied to productions, many films are digitally shot and transferred online or through memory units, raising logistical concerns.
Handel commented on the issue of intellectual property, clarifying, 'You can buy a movie ticket, but you cannot purchase a movie in the same way you buy a piece of clothing or a car.'
The president's remarks come at a time when Hollywood is struggling to return to its former glory and dominance.
Los Angeles remains the entertainment capital of the United States; however, it recorded a historic low in filming days last year.
The industry was severely impacted by the COVID-19 pandemic and subsequently by strikes from writers and actors that nearly halted productions in 2023.
Additionally, numerous productions have migrated to other states and countries, taking advantage of tax incentives and economic opportunities, as well as creative considerations.
Earlier this year, Netflix announced a $1 billion investment in Mexico aimed at developing films and television programs over four years.
Some industry voices view the idea of attracting more productions back to the U.S. positively.
An anonymous investor stated, 'I actually agree with the goal, and I believe many film executives would too.
It's outrageous how many productions have moved abroad due to the lack of exemptions here.
But obviously what is needed are exemptions, not tariffs.
Tariffs would choke what's left of the business.'
In light of this uncertainty, studios convened emergency meetings on Monday to address the situation, according to American media reports.
The White House stated that no final decisions had been made, with spokesperson Kush Desai noting, 'The administration is exploring all options to implement the President's order.'
