Unleashing 'Merica's Dream Factory: Trump's Threat to Hollywood's Dominance?
Is he carelessly undermining the fantasy production studio? - Sabotaging the Dream Manufacturer?
Donald Trump, our 78-year-old POTUS, ain't one to mince words. His verbal arsenal includes a few choice phrases like "Zoll" (his fave German word) and "God" and "religion." But right up there in the US president's top picks is his war cry against foreign imports, tariffs reaching triple-digit percentages on foreign products, sending global economies into a tailspin. And it looks like Tinseltown ain't escape-free.
The Hollywood dream factory has become a thorn in Trump's side, as he bemoans the fact that most films aren't actually produced in Hollywood. His proposed solution? A hefty 100 percent tariff on films made outside the US, even going as far as declaring it a "national security threat". He's gotten some assistance on this little crusade from some heavy Hollywood hitters, like Angelina Jolie's estranged father, Jon Voight, who Trump appointed alongside Sylvester Stallone and Mel Gibson as special film industry envoys in January.
But what would this plan really mean for Hollywood? And is it even feasible?
Can Trump Tax Film?
Here's the rub: Film production is an incredibly globalized endeavor. Visual effects and computer graphics gurus can be located in one country, while sound effects techies hail from another. Without a load of expensive studio buildings in the US (wink, wink), shooting on foreign soil is inevitable.
To picture an American medieval film without real-life castles? An international super-spy like Ethan Hunt or James Bond, who can only save computer-generated metropolises around the world? And if it's about series, do we have to set the next "White Lotus" season on the Gulf of America?
As for James Bond, since Amazon took over the reins, fans have been up in arms. If he were to be stripped of his British roots due to tariff reasons, they'd go postal! And who can make a martini the right way without London dry gin?
The questionable legality aside, the logistical nightmare of implementing this plan across the board for foreign films seems daunting.
Independents Be Gone?
For US productions shot or completed elsewhere due to cost or logistical reasons, a blanket 100 percent "import duty" tariff seems unenforceable.
But when it comes to productions not from the US, the consequences would be more severe. A 100 percent tariff on a film from Germany, for instance, would make distributors think twice about bringing it to the US market. After all, it would have to be twice as successful to match current revenues.
For foreign independent and art-house cinema, this cost-benefit analysis would likely result in a resounding "no." The result? A dive in film diversity in the US and a lost, crucial market for filmmakers outside the US, spell doom for the global film industry.
With the film industry still struggling to recover from the pandemic, this added uncertainty could prove devastating. But with a few exceptions, almost every film released now is already a financial risk for studios. With additional costs, the number of potential studio-crippling box office flops would increase. Meanwhile, the appetite for taking risks on innovative, untested ideas is waning.
Studio Execs Raising Eyebrows
Even the big dogs driving the Hollywood machine were caught off guard by Trump's plans and are still scratching their heads, wondering what it all means. According to "The Hollywood Reporter," the CEOs of studios like Warner Bros., Paramount Pictures, Sony Pictures, and others are set to gather for a crisis summit this coming Friday. Questions abound, such as: could the tariffs potentially apply retroactively to completed but not yet released films?
There seems to be consensus on one thing, however: if Trump's 100 percent tariffs become reality, the consequences for the film industry would be catastrophic.
Potential Countermeasures?
Countries like Canada and the European Union have already threatened retaliatory tariffs. China has already used the film industry as a bargaining chip before Trump's explicit Hollywood tariffs.
According to "Variety", the Chinese film leadership said in a statement at the beginning of April: "The wrongful actions of the U.S. government in abusing tariffs against China will inevitably further reduce the acceptance of American films among the domestic audience. We will follow the market rules, respect the audience's choice, and moderately reduce the number of imported American films."
In short, if the Hollywood tariffs become a reality, the outcome would likely be threefold: job losses for filmmakers outside the US, higher prices for cinema and streaming for consumers worldwide, and a significantly reduced range of films and series with less diversity. Quite the double-edged sword, wouldn't you say?
- Donald Trump, as the US President, has proposed a 100% tariff on films not produced within the US, labeling it as a "national security threat."
- Angelina Jolie's estranged father, Jon Voight, along with Sylvester Stallone and Mel Gibson, were appointed as special film industry envoys by Trump to assist in this endeavor.
- The implementation of such tariffs could lead to increased prices for movies and TV shows worldwide, potentially impacting consumers, as countries may threaten retaliatory tariffs.
- If Trump's tariff on foreign films becomes a reality, it could result in a decrease in film diversity within the US, as foreign independent and art-house cinema would likely struggle to find a market.
- This tariff plan, if enforced, also poses a significant risk to the global film industry, which is already struggling to recover from the pandemic, as it could lead to job losses for filmmakers outside the US.
