NEW YORK (AP) —
President Donald Trump
Is initiating a fresh assault in his tariff conflict, focusing on movies produced abroad.
On Sunday evening, he posted on his
Truth Social platform,
Trump said he has authorized the Department of Commerce and the Office of the U.S. Trade Representative to slap a 100% tariff “on any and all Movies coming into our Country that are produced in Foreign Lands.”
The film industry in America is facing an extremely rapid decline,” he stated, expressing concern that various nations are providing numerous enticements to lure filmmakers and production houses away from the United States. “This coordinated action by other countries constitutes a national security issue. Moreover, it serves as a form of messaging and propaganda!
Initially, it was not evident how tariffs on international productions might be put into practice. Whether they’re big blockbusters or small independent films, many projects often involve filming in various locations within the United States as well as abroad. For example, high-budget movies such as “Mission: Impossible – The Final Reckoning” frequently have scenes filmed across different countries worldwide.
For many years, incentive programs have steered the locations where movies are filmed, progressively shifting film production away from California towards other states and countries offering attractive tax breaks, such as Canada and the United Kingdom.
Still, tariffs aim to guide consumers towards purchasing American goods. In cinemas, however, American-made films significantly overshadow local productions in the market.
China has increased its local film output significantly, leading to the animated hit “Ne Zha 2” earning over $2 billion domestically this year. However, these impressive figures were largely due to strong sales within mainland China itself. In contrast, the film only managed to bring in about $20.9 million in North America.
The Motion Picture Association did not promptly reply to inquiries on Sunday evening.
The figures provided by the MPA illustrate the dominance of Hollywood exports in global cinema. As per the MPA report, U.S.-produced films generated $22.6 billion in export revenue and achieved a trade surplus of $15.3 billion in 2023.
Trump has made good on the “tariff man” label he gave himself years ago, slapping new taxes on goods made in countries around the globe. That includes a 145% tariff on Chinese goods and a 10% baseline tariff on goods from other countries, with even higher levies threatened.
Through his unilateral imposition of tariffs, Trump has significantly altered commercial activities, introducing substantial political uncertainties and causing fluctuations within the market. These duties encompass vehicles, steel, and aluminum; additionally, forthcoming importations such as pharmaceuticals face potential exposure to further tariff increases in the coming weeks.
Trump has frequently expressed worry over film productions shifting abroad.
Just prior to assuming his position, he did so.
stated that he had chosen
actors Mel Gibson, Jon Voight, and Sylvester Stallone will act as “special ambassadors” for Hollywood with the aim of bringing it back “LARGER, MORE IMPRESSIVE, AND TOUGHER THAN EVER BEFORE!”
American film and television production has faced challenges recently, largely due to the disruptions caused by the COVID-19 pandemic.
Strikes at Hollywood guilds in 2023
And following the recent wildfires in the Los Angeles region, overall production in the United States decreased by 26% last year compared to 2021, as reported byProdPro, a platform that monitors production activities.
The organization’s yearly poll of business leaders, which queried their favored shooting sites, revealed that no American destination ranked among the top five choices.
based on reports from the Hollywood Reporter
. Toronto, the U.K., Vancouver, Central Europe and Australia came out on top, with California placing sixth, Georgia seventh, New Jersey eighth and New York ninth.
The issue is particularly severe in California. Within the larger Los Angeles region, production levels dropped by 5.6% compared to those of 2023.
according to FilmLA
Second only to 2020, at the height of the pandemic, this occurred. In last month, Governor Gavin Newsom suggested increasing California’s Film & Television Tax Credit program budget to an annual amount of $750 million, up from $330 million.
Several US cities such as Atlanta, New York, Chicago, and San Francisco have similarly employed robust tax incentives to attract film and television productions. These initiatives may manifest as direct cash grants, similar to those provided in Texas, or through tax credits, as seen in states like Georgia and New Mexico.
Other countries have been taking our movie-production abilities,” Trump stated to journalists at the White House on Sunday evening following his return from a weekend in Florida. “If these nations aren’t making their movies within the U.S., we ought to impose a tariff on those imported films.
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The Associated Press reporter Gary Field provided additional reporting from Washington.
Jill Colvin and Jake Coyle, The Associated Press
