by Jennifer Asensio
| Published
US President Donald Trump called for imposing 100% tariffs on films shot outside the United States. In a post published by Truth Social last week, he said: “Our filmmaking business has been stolen from the USA, by other countries, just like candy is stolen from a baby.” However, the insinuation has caused quite a stir throughout Hollywood, with the industry speculating about how the tax would be implemented.
How to use filmmaking for work
In pre-Hollywood eras, filming in the United States was common because foreign locations could be filmed, more often than not, on a soundstage. This reduced or even eliminated the necessity of traveling to exotic locations, unless the film needed footage of a famous landmark.
Most states and many cities also offer incentives to film there. Critical infrastructures for support staff, such as caterers, transportation, set builders, and other crew members have sprung up in areas such as Manhattan, Atlanta, Boston, Chicago, and other major cities to encourage filmmakers.
How are movies made now?
These days, foreign countries offer better incentives, and American cities are not easy to work with. Labor is cheaper abroad, and laws in some places are more lenient, which has pushed the film industry overseas as films seek to cut costs and increase their box office earnings.
A global model has emerged in Hollywood, whereby several countries may be involved in a film in different aspects of its production, especially with the increasing use of computer technology and computer graphics. Celebrities as diverse as Jon Voight (the President’s Hollywood liaison) and George Clooney (a loyal supporter of Kamala Harris) emphasized that these factors have pushed film production overseas and that more films should be produced at home.
How to save Hollywood
However, there is disagreement about how production transfer to Hollywood can be productively achieved. President Trump made similar comments in May about imposing tariffs on films shot abroad, and Voight has expressed that the administration is exploring federal tax incentives, supporting infrastructure that supports domestic filmmaking, and establishing co-production treaties with other countries.
Critics agree that such moves could help, but films are services, not goods, and therefore not subject to tariffs. The proposed tariff on films shot abroad will be the first time a tariff has been imposed on the service.
There are also questions about how this will affect film distribution. Will foreign films imported into the United States be subject to this tax? Will tariffs hurt American films shown abroad?
Some countries have limited the number of Hollywood films allowed per year, and the worry is that others may follow suit. There is also the question of what qualifies as a “movie,” including television shows and advertisements.
There are no definitions for movies, at least not yet
Despite all the speculation, the tariffs are just a suggestion made by Trump on Truth Social. It’s not a law or an executive order, at least not yet, and it’s accompanied by some encouraging news about how the current US administration plans to help the film industry.
Films produced in the United States not only provide entertainment but can also be a source of employment for Americans across the country. Bringing more film production to the United States would be a welcome addition to the economy, if done right.
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