President Trump floated the idea of imposing 100% tariffs on films produced in other countries, sparking confusion and criticism from Hollywood and state officials before he later indicated he would meet with industry leaders. The initial announcement, made on social media, suggested the American movie industry was "DYING a very fast death."
Industry analysts and executives reacted with baffle. They questioned how tariffs would apply to intellectual property like films, which fall under the services economy, unlike tangible goods typically subject to trade taxes. Financial markets showed concern, with shares of major entertainment companies falling on Monday.
Jon Voight, an actor serving as one of Trump's Hollywood ambassadors, weighed in on the discussion. Voight stated he had recently met with the president to discuss potential tax provisions to help the industry. These provisions, according to Voight, focused on incentives that could be extended or revived, not tariffs.
California Governor Gavin Newsom also responded to the proposed tariffs. Newsom called on the Trump administration to partner with the state on a federal tax credit program for the film and television sector, proposing a $7.5 billion scheme. Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production, Newsom said.
Trump later softened his public stance on the tariffs. He told reporters he intended to meet with industry figures to make sure they were content with any proposals. We’re going to meet with the industry; I want to make sure they’re happy about it, Trump stated.
The idea of tariffs on foreign productions touches on the issue of "runaway production," where film projects seek lower costs and tax breaks in other countries. While California has its own tax credit programs, Newsom and others argue for a federal approach to keep production jobs domestically.
Despite the president's later comments, sources within the movie industry expressed dismay. They noted that applying tariffs could halt production and that the complexity of enforcing such a tax on creative works presented major obstacles.
Senate leaders also commented on the proposal. Adam Schiff, a senator from California, opposed the tariff idea while supporting the call for a federal tax credit.
