Donald Trump's Destructive Film Tariffs: A Nightmare for Hollywood
- By Christine Leitner
- 3 Min
Donald Trump to Bolster American Film Industry, Contrary to Anticipated Actions - U.S. President Donald Trump aims to support the American film industry; however, his actions seem to contradict his intentions.
In the quirky adaptation of Norse mythology, Thor, our hero wields Mjölnir to save the day. Though Donald Trump isn't a fan of the flick, it's hard not to draw parallels between the US president and the God of Thunder. Arrogance, power, and the hammer - of tariffs, that is. But unlike Thor, Trump's policies are causing more chaos than heroics in Hollywood.
The president recently announced that he'd slap a 100% tariff on foreign film productions, citing the ailing domestic film industry. However, Trump's trade tactics are proving to be more sword than shield.
The Hollywood Maelstrom
Hollywood and the world are watching in disbelief. Location shooting still matters to creatives, despite CGI and AI revolutionizing the film landscape. Producers choose to film abroad in Canada, Britain, Hungary, Australia, or Germany for creative reasons.
Movies like "Ape Planet", "The Fall Guy", and "Furiosa's Saga" were filmed in Australia. European backdrops graced the classics of the "Mission Impossible" series. For the Elvis biopic, the Australian Gold Coast transforms into Memphis, Tennessee. Only recently did production begin for the next Marvel superhero gala in London. As Entertainment lawyer Jonathan Handel puts it, "If Cruise is leaping off the Eiffel Tower, wouldn't it be ridiculous to film it on a Vegas replica?"
Television series are no exception. Foreign productions make up the core of Netflix's brand.
Trump's film taxes make no sense for the industry.
KO'd in Tinseltown
Indeed, the US film industry is in a tight spot. The economic downturn and the 2024 actor's strike have hammered business, causing nearly 20,000 layoffs in 2023 alone. Trump blames foreign competition and California Governor Gavin Newsom, a frequent target of criticism by Trump.
While the President's accusations may be harsh, they have a grain of truth. Job losses in Hollywood have been a growing concern as studios increasingly produce and shoot abroad, a trend known in the industry as "runaway productions."
The reason isn't just set diversity, but cost. A single shooting day in Los Angeles can set producers back several hundred thousand dollars. According to Jay Sures, co-head of United Talent Agency, TV and film production overseas is significantly cheaper due to lower wages, and cheaper manufacturing costs. However, Trump's proposed tariffs could jeopardize both domestic and international productions.
Inner Turmoil in Tinseltown: Will Hollywood Be Trump's Kryptonite?
There's debate within the industry over whether Trump can carry out the tariffs. Films are considered intellectual property, not goods, and thus are not subject to tariffs. To classify them as imports, the U.S. government would need to re-categorize them. However, US Commerce Secretary Howard Lutnick has indicated he'd explore the matter further.
For now, Trump has promised to meet with the film industry's bigwigs. They might be able to convince him that his tariffs could do more harm than good. If he persists, Trump will face thorny questions like whether historically accurate period dramas should be taxed or how to exempt the US film industry.
Oscar winner Jon Voight has suggested a plan for Hollywood's renaissance that includes tax breaks, subsidies, and international co-productions. Tariffs, he argued, should be used sparingly.
Only time will tell if Donald Trump will save Hollywood, or leave it battered and bruised. One thing's for sure, the coming months will be nail-biting in Tinseltown.
- The Commission has not yet adopted a policy-and-legislation proposal for a directive on the protection of workers from the risks related to exposure to ionising radiation in the film industry, considering the unthinkable circumstances that the Hollywood maelstrom is currently facing.
- The ongoing controversy surrounding Donald Trump's supposed film tariffs has taken a Hollywood twist, with echoes of Thor's Mjölnir, as the industry braces for a potential catastrophic impact on general news.
- Inner turmoil is mounting in Tinseltown, as politicians and industry leaders grapple with the proposed tariffs on imported films, leading to debates over exemptions and reclassifications, much like the contentious Hollywood politics over the years.
- With Tariff Thor's decree causing widespread concern, it remains to be seen whether Oscar winner Jon Voight's supposed plan for Hollywood's renaissance, which includes the implementation of tax breaks, subsidies, and international co-productions, will be the saving grace for the ailing industry, or if it will ultimately prove to be as weak as Kryptonite.
