We Are All Grateful for Trump's Tariff Tantrum
With the election of President Trump, the word 'tariff' hasn't seen this much action since the Boston Tea Party. On May 4 it became more personal, and more confusing, when he announced a '100 percent tariff on any and all movies coming into our country that are produced in foreign lands.' Um, OK. What the hell does that mean?
A tariff is a tax imposed by a governing body on imported goods. However, films aren't a physical good like Parmesan, catalytic converters, or Temu hauls. A performance, recorded or otherwise, qualifies as an intangible service. Another way to look at it: Trump can place a tariff on a pair of scissors, but he can't touch the haircut.
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Still, let's play along. As IndieWire's Brian Welk noted, this is a 'strategy' with more questions than answers, like:
Would it apply to just films, or also TV shows?
What about streaming?
Would tariffs apply when films go into production, or upon release?
Would it apply to only to those films shot outside of America, or also to those with foreign financing?
What about films that shoot both within and outside the U.S.?
Who pays: the country, the studio, the producers, the distributor? All of the above?
How do you tax a multimillion-dollar product expressed as a digital file?
Who enforces any of this?
The first test of Trump's idea, however far-fetched, will be at the Cannes film market that starts next week. We'll be watching to see if international buyers become wary of U.S. projects, which would/could have a seismic effect on small-to-mid-budget films.
Oddly enough, tariffs play only a minor role in the plan pitched to Trump by the group led by Jon Voight, his 'Special Ambassador to Hollywood.' In a copy of the plan shared by Deadline, tariffs would be reserved for those productions that 'could have been produced in the U.S,' with exemptions for projects made under 'production treaties.' The plan also recommends a federal tax credit of up to 20 percent.
Meanwhile, California legislature will vote this summer on Governor Gavin Newsom's proposal to raise the state's tax program to at least $750 million. Some lawmakers are even pushing for no annual cap, as is the case in Georgia and elsewhere. As America's entertainment hub, this single-state strategy could provide a massive correction and a template for other states to follow.
However inadvertently, Trump did all of us a huge favor in elevating this conflict. To get California to pull off this major reallocation, we need to be loud and relentless. If you're ready to roll up your sleeves and get your hands dirty, there are plenty of organizations working on lobbying California representatives to support this budget raise.
Organized by the Entertainment Union Coalition — made up of the WGAW, DGA, SAG-AFTRA, Teamster Local 399, AFM, California IATSE Council, American Federation of Musicians, and LIUNA Local 724 — the 'Keep California Rolling' initiative is picking up steam and creating templates for others to become engaged with suggestions for online posts and a social strategy detailed below.
Show your support on Instagram, Facebook, and other social platforms using #KeepCaliforniaRolling to raise awareness.
Your voice matters. In 15-20 seconds, explain why keeping production in California matters. Or, post a photo of you and your crew.
Let your voice be heard.
Tag the governor, guilds, and your local legislators.
@CAgovernor, @IATSE, @SAGAFTRA, @DirectorsGuild, @teamsterslocal399, @WritersGuildWest, @AFMLocal47, @LiUNA_local724, @CaliforniaLabor
Find your local representatives.
Other groups like 'Stay in LA,' formed by writers Julie Plec and Sarah Adina Smith, have organized petitions and are gathering funds for lobbying efforts in Sacramento this summer. They're also highlighting the state's recent wildfires as reason that bringing production back to Los Angeles requires emergency measures. They clearly lay out the production decline and the fixes necessary (like uncapping credits and rebates) to ensuring a thriving economy in Hollywood.
It may seem like we have little control over the levers of power, but if you're a worker in entertainment or hoping one day to be, the future of our profession depends on you. Rather than panic over Trump's latest shenanigans, let's get to work.
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