'Hollywood Stunned: Trump Unveils Film Tariffs'

Hollywood reacted Monday with skepticism to US President Donald Trump's announcement of 100 percent 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 doesn’t make any sense," entertainment lawyer Jonathan Handel commented regarding Trump's proposal.

Handel told News in A Day that numerous American productions, ranging from James Bond movies to the "Mission Impossible" series, are shot overseas due to clear artistic advantages.

If the stunt involves Tom Cruise scaling the Eiffel Tower, should we instead aim for shooting scenes with a replica of the Eiffel Tower in Las Vegas?" Handel asked. "It seems completely absurd.

Writing Sunday on his platform Truth Social, Trump said: "I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands."

Trump added: "WE WANT MOVIES MADE IN AMERICA, AGAIN!"

His statements threw the film world into turmoil, with entertainment firms experiencing declining stock values, labor unions grappling with whether this shockwave extends to television shows, and all questioning the feasibility of implementing such a policy.

Handel observed that movies encompass 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," which can be taxed as they cross a border into the United States, he said.

Even if a system could be devised to impose tariffs on movies filmed outside the United States, these levies would do more harm than good to the US industry, the lawyer added.

Handel contended that the outcome would lead to decreased production, higher movie costs, fewer films being made available for both cinemas and streaming platforms, thus harming the distribution aspect of the industry.

- 'Confusion' -

Many film studios and related groups hadn't formally commented as of Monday, though according to reports from entertainment news sources, Trump’s statement prompted emergency gatherings within the industry. These reports also included doubtful remarks from those inside who chose to remain unnamed.

"I can't see his target here other than confusion and distraction," the showbiz news outlet Deadline quoted a top distribution executive as saying.

"I'm hoping this will prompt urgently required increases in U.S. state tax incentives to be put into place as quickly as possible," the individual remarked.

Such incentives offered by other countries -- like Britain, Canada and Ireland, among others -- are a lure for US movie studios to film outside the country.

While 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 count of filming days reached an all-time low in 2024, provided you do not include the complete halt that occurred in 2020 due to the COVID-19 pandemic.

This is partly due to the increasing number of countries offering incentives like tax breaks for filming movies.

Deadline cited a Hollywood film producer who stated that they concur with Trump's objective of increasing domestic movie production within the United States.

"But obviously the need is for rebates, not tariffs. Tariffs will just choke the remaining life out of the business," they were quoted as saying.

While Hollywood was concerned about Trump's statement, the White House mentioned that no choice regarding foreign film tariffs had been finalized yet.

"The administration is examining every possibility to fulfill President Trump's mandate for protecting our nation’s national and economic security while also working towards Making Hollywood Great Again," stated the White House.

Trump told reporters Monday, "I'm not looking to hurt the industry. I want to help the industry. But they're given financing by other countries."

The apparently reconciliatory statement did not retract the film tariff announcement, with Trump criticizing California Governor Gavin Newsom, who wants to increase the state’s tax credits for the movie sector by twofold.

"Our film industry has been decimated by other countries taking them out, and also by incompetence," Trump said, attacking Newsom.

He simply let it slip out of the grasp of Hollywood,

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