President Trump's call to impose sudden tariffs on films “produced on foreign lands” came after meeting actor John Voight over the weekend at Mar Lago. He named Hollywood the “special ambassador” this year.
The president's social media post calling for a 100% tariff on films produced outside the US caused confusion in Hollywood. Understanding Trump's proposal, most of the industry worried that tariffs could cause more harm than good, and others instead seeking federal support in the form of tax credits.
According to a statement from Paul's company SP Media Group, his longtime manager, Voight and his longtime manager, Stephen Paul, met with Trump over the weekend to share plans to increase film production in the country. They proposed federal tax incentives, changes to tax laws, joint production treaties with other countries, and infrastructure subsidies, the statement said.
The proposal also includes “customer duties in certain limited circumstances,” the statement said, adding that it is under review.
Voight played a Hollywood round last week and met with the Motion Picture Association, the top Hollywood lobbying group. Various unions; and representatives of states pushing forward bills to increase state tax credits for the film and television industry. State Sen. Ben Allen, a Democrat in the districts, including Hollywood, will meet with the actors to discuss ways to increase production in the state, representatives said.
Voight emerged from these meetings in two one-page documents drafted by the MPA, encouraging Washington lawmakers to adopt manufacturing and production incentives to promote more domestic employment. The other is asking Congress to extend some of the tax laws that expire at the end of 2025 and allow them to deduct certain film and television costs in the year they incur.
There was no mention of tariffs in either draft document reviewed by The New York Times.
The letter was approved by Hollywood groups including the American Producer Guild, the American Director Guild, Saghura, Writer Guild East, Producer United, Independent Film and Television Alliance, and the International Alliance of Theatre Employees.
The MPA declined to comment Monday. Members of the association include Disney, Netflix, Paramount, Sony, Universal, Warner Bros. and Amazon.
Trump's efforts remain unknown. What exactly does a film face tariffs? Do tariffs apply only to films that have received tax incentives from other countries or have scenes shot overseas? How about foreign films? Or do post-production visual effects work? Among those and many other questions, some analysts said it is very unlikely that a 100% tariff on all films made overseas would be realized.
On Monday morning, White House spokesman Kush Desai revealed that “no final decision has been made on foreign film tariffs,” but added that “the administration is exploring all options to implement President Trump's direction.” Trump planned to meet with representatives from the entertainment industry on Monday, adding, “I'm not trying to hurt the industry. I want to help the industry.”
Not this kind of thing, the industry is seeking help.
Despite the majority of films shown in American cinemas being technically produced in the US, generous government incentives and cheaper labor have been invited to film and television to film many of the projects far from Hollywood.
It left Los Angeles in a hurry. Thousands of middle-class film workers – camera operators, set decorators, lighting technicians, makeup artists, caterers and electricians – have seen their work evaporate.
In a statement Monday, the International Alliance of Theatre Employees said tens of thousands of jobs across the United States have been lost in the past two years.
“The United States needs a balanced federal response to return film and television jobs,” said union president Matthew D. Roeb. The union praised Trump for recognizing the threat that international competition poses to work in the domestic film industry, but Roeb said he was “awaiting more information about the administration's proposed tariff plan.” He said the union would not support plans that would harm Canadian members or the industry as a whole.
Duncan Crabtree-Areland, head of Sag-Aftra, a union representing actors, said in a statement:
Industry workers and state officials are aiming to increase the amount of funds for filming made available by California, and some have begun pushing for federal tax credits that can be tiered over state incentives. (Over 30 states already offer incentives to seduce film and television production.)
California Gov. Gavin Newsom, a Democrat, is pushing more than twice as much funds available for the state's tax incentive program. Newsom's spokesman Izzy Gurdon has postponed his decision on the president's tariff call. “If the president issues a proposal with detailed information, 'We'll review it,' he said.
On Monday, a series of state and federal lawmakers, unions and filmmakers tried to express their gratitude for Trump's attention on the issue, pushing for tax credits rather than tariffs.
For example, Roeb said his union recommends the Trump administration introduce production tax incentives for federal films. Sen. Adam Schiff, a Democrat of California, is working on a federal film incentive proposal, his office said.
“I share the administration's desire to bring filmmaking back to the US,” Schiff said in a statement. “While the comprehensive tariffs on every film will have unintended and potentially damaging effects, we have the opportunity to work together to pass on a massive federal film tax credit to re-appreciate American employment in the industry.”
Rep. Rick Chavez Zbur, one of the lawmakers who wrote one of the state's bills, was a duller thing.
“We haven't seen any details about this tariff in the entertainment industry, but President Trump's tariffs in other regions are hurting American consumers,” he said.
“A better approach than President Trump's tariffs,” he added.
Former Hollywood producer Laura Friedman, who made the push to maintain production in Los Angeles, urged Trump on Monday to take part in “fighting for national film tax credits that levelleise the arenas overseas.”
But the mere proposal of a large and broad tariff has surprised many in the film industry.
“The problem is realistic, but tariffs are not the solution,” the collective producer said in a statement. “Imposing tariffs on “foreign” production will have devastating consequences not only for international partners, but for US-based companies, workers and creators. ”
“A more strategic approach is to implement a federally produced rebate that encourages studios and investors to bring jobs home,” the statement continued. “Policies like this will create domestic opportunities, increase competitiveness and maintain creative excellence that defines American entertainment.”
Shawn Hubler contributed to reports from Los Angeles and Laurel Rosenhall in Sacramento.
