‘Makes no sense': Hollywood shocked by Trump's film tariffs announcement
LOS ANGELES – Hollywood reacted on May 5 with scepticism to US President Donald Trump's announcement of 100 per cent tariffs on foreign films, with movie insiders calling it a policy made up on the fly by a president who fails to understand how the industry works.
'It makes no sense,' entertainment lawyer Jonathan Handel said of Mr Trump's idea.
Mr Handel explained that many US productions, from James Bond flicks to the Mission Impossible franchise, are filmed abroad for obvious 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 said. 'I mean, it's just nonsensical.'
Posting on May 4 on his platform Truth Social, Mr Trump said: 'I am authorising the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100 per cent tariff on any and all movies coming into our country that are produced in foreign lands. '
Mr Trump added: 'We want movies made in America, again!'
His words plunged the movie industry into uncertainty as entertainment companies saw their stock prices fall, unions struggled to understand if the bombshell would also apply to television series and everyone wondered if the policy could even be enforced.
Hollywood brings in most of its box-office revenue from overseas. In 2024, about 70 per cent of the roughly US$30 billion (S$38.7 billion) in global ticket sales came from outside the US and Canada, said Mr Daniel Loria, senior vice-president at The Boxoffice Company.
Mr Handel said movies involve intellectual property.
'You can buy a movie ticket, but you don't buy a movie the way you buy a piece of clothing or an automobile,' he said, noting that the item can be taxed as it crosses a border into the US.
Even if a system could be devised to impose tariffs on movies filmed outside the US, the duties would do more harm than good to the US industry, the lawyer added.
'The result of that would be to reduce production, to increase the cost of movies, to reduce the number of movies available for movie theatres and streamers to show, which would damage the distribution side of the business,' he said.
Most movie studios and other industry organisations had yet to officially react on May 5, but Mr Trump's announcement triggered crisis meetings, Hollywood press outlets reported, publishing sceptical comments from insiders speaking on condition of anonymity.
'I can't see his target here other than confusion and distraction,' show-business news outlet Deadline quoted a top distribution executive as saying.
'Let's hope this only encourages desperately needed increases in US state tax incentives being implemented as soon as possible,' the person added.
Such incentives offered by other countries – such as Britain, Canada and Ireland, among others – are a lure for US movie studios to film outside the country.
A survey among studio executives on their preferred production locations for 2025 to 2026 by ProdPro showed that the top five choices were all elsewhere.
While Mr Trump's idea is divisive, there is widespread agreement that the US movie industry is in dire straits.
Since the historic strikes by actors and writers that shut it down in 2023, Hollywood has struggled to get back on its feet.
In Los Angeles, the number of filming days hit a record low in 2024, if one excludes the total shutdown in 2020 because of the Covid-19 pandemic.
Deadline quoted a Hollywood movie financier as saying he actually agrees with Mr Trump's goal of having more movies filmed in the US.
'But obviously, the need is for rebates, not tariffs. Tariffs will just choke the remaining life out of the business,' he was quoted as saying.
As Hollywood fretted over Mr Trump's announcement, the White House said no decision on foreign film tariffs has been made.
The President told reporters on May 5: 'I'm not looking to hurt the industry. I want to help the industry. But they're given financing by other countries.'
That seemingly conciliatory remark stopped short of walking back the film tariff announcement, as Mr Trump criticised California Governor Gavin Newsom, who is pushing for his state to double the tax credits it grants to the movie industry. AFP, REUTERS
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