The
stock market
suffered significant criticism following President
Donald Trump
stated he would impose a
A 100% tariff will be applied to all movies.
created outside of the United States.
Trump said he made the decision to save America’s movie industry from ‘dying a very fast death’ – but shares drastically declined overnight plunging the stock market into chaos.
Shares in Disney,
Netflix
By Monday morning, Warner Bros. Discovery, Paramount, and Comcast had each fallen by at least one percent.
On Sunday night, in a Truth Social posting, the head of state stated: “Various nations are providing numerous enticements to lure American filmmakers and studios away from the United States.”
He went on: “Hollywood and numerous other regions across the USA are facing devastation.”
Studios in Hollywood
have shot lengthy films abroad
For tax incentive purposes, financial planning challenges, or to depict the ambiance of foreign settings.
The film industry in America is facing an extremely rapid decline,” he observed, and stated further that he has instructed the Department of Commerce and the U.S. Trade Representative to ‘promptly initiate procedures for imposing a 100 percent tariff on every movie entering our country that is manufactured abroad.
He didn’t clarify whether this new regulation would cover films on streaming services as well as those shown in movie theaters. Trump likewise didn’t mention if the tariffs would be determined by production expenses or theater revenues.
Alicia Reese from Wedbush informed investors on Monday that major studios, distribution companies, and indie studios face considerable risks because they must advocate with the Trump administration to establish fair criteria for movies necessitating live-action scenes filmed abroad.
CNBC
reported.
She approximated that 75 percent of Netflix’s content originates from countries outside the US, with foreign-language movies and TV shows constituting a substantial part of the platform’s offerings.
Reese pointed out that much of Netflix’s programming is produced by independent studios, with the platform having minimal influence over the filming locations for this content.
Barton Crockett, an analyst at Rosenblatt Securities, stated that his latest tariff initiative would likely result in studios producing fewer content pieces.
‘She also mentioned the danger of retaliatory tariffs being imposed on American content abroad.’
Reuters.
William Reinsch, a previous high-ranking Commerce department official, supports Crockett’s worries, further stating that counteractions from other nations will ‘destroy our industrial sector.’
‘Reinsch went on to say, “We stand to lose much more than we could possibly gain.”‘
It’s not just Americans speaking up against the new tariffs; leaders from New Zealand, Australia, and other favored shooting spots like those used for Marvel films and “The Lord of the Rings” have stated they are prepared to protect their domestic filmmaking sectors.
The British media workers’ union Bectu similarly called on the government to safeguard the nation’s crucial film industry and cautioned that a significant number of freelance positions could be impacted.
Specifically, London has emerged as a key center for productions thanks to tax benefits, English-speaking workforces, and extensive facilities.
Disney’s Marvel Studios is presently shooting a couple of Avengers follow-up movies in that location.
The Washington Street Journal
reported.
Mission:Impossible – The Final Reckoning and Jurassic World Rebirth — two of the biggest releases of the season — were filmed entirely or mostly outside the United States.
In 2023, the American film sector reported revenues of over $15.3 billion in trade, according to a Motion Picture Association study, and maintained a favorable trade surplus with all significant international markets.
Although numerous people worry about how Trump’s recent choice might affect Hollywood, a collective based in Los Angeles has pushed for all movies and television series to be entirely produced from start to finish within the area.
Noelle Stehman, an author and creator associated with The Sopranos and part of the ‘Stay in LA’ initiative, addressed the continuous problem within the film and television sector to the audience in April.
Stehman warned that failing to take action could result in the California film and TV sector becoming the next Detroit auto industry, drawing an analogy between the Motor City’s decline from being the heart of automobile manufacturing and Hollywood’s apparent trajectory toward relinquishing its longstanding prominence.
“Stay in LA” is a political group dedicated to advocating for Hollywood productions with the mission to “reinvigorate our city’s dynamic creative sector and elevate the whole of Los Angeles in the process,” as stated on their website.
Although numerous politicians view boosting funding for the sector as an unnecessary handout, others like California State Senator Ben Allen and State Assemblyman Rick Zbur are striving to secure additional financial support for the beleaguered industry.
Specifically, funds have dwindled for post-production and musical elements in movies and television series.
This isn’t simply a tax giveaway,” asserted Zbur during the meeting. “It’s actually a jobs initiative aimed at helping individuals stay in their residences and preventing them from joining the ranks of the unemployed.
The gathering occurred shortly following the release of FilmLA’s most recent on-site production statistics, indicating that filming activities dropped by 22.4 percent in the first quarter relative to the previous year at the same period.
In the first quarter of 2024, the non-profit organization reported that there were 6,823 shootings. By January 2025, this figure had dropped significantly to 5,295.
The newly stated figure is also below what it was in 2023 during the period when the SAG-AFTRA strike dominated the sector.
According to the statistics, in July there were 5,311 shootings, and in October, the number rose to 5,520.
Additionally, there are two suggested state bills in California that could enable these credits, and both have been backed by Allen and Zbur.
Even though the present objective is to boost the tax allocation, the organization acknowledged that this is merely one stride towards progress.
The group stated, “We understand that sustaining the revitalization of L.A.’s entertainment economy will require additional efforts beyond just offering tax incentives.”
Read more
