Do you understand Trump's movie tariff plan? Because Hollywood is totally baffled

Trump wants to impose a 100% tariff on movies produced outside the US. Hollywood is baffled.

May 5, 2025 - 17:31
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Do you understand Trump's movie tariff plan? Because Hollywood is totally baffled
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"Thunderbolts" is a Marvel movie made primarily in Georgia. Most of Marvel's production work is moving to London.
  • When you see a movie or a TV show, do you think about where it was made?
  • Lots of people in Hollywood do — they're seeing more and more productions move outside the US.
  • Donald Trump says he wants to reverse that. But his proposal is hard to understand.

There are many stories out right now about Donald Trump's call for a "100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands."

But let's give the concision award to Variety, which noted that Trump's Sunday night announcement generated many questions in Hollywood, "starting with: Huh?"

Let's also note that Trump frequently changes his mind about things, and most definitely about his tariff policies. So it's entirely possible his Hollywood tariff post leads to nada.

While we're throat clearing, let's also note that, unlike some of Trump's other tariff pushes, this one doesn't imagine a world where work that left the US long ago comes back to the country. Movie (and TV) production remains a huge business in the US, employing millions of people.

And lastly, Trump is correct in noting that film (and TV) production has been leaving Hollywood for years. Sometimes it has gone to other places in the US: Disney has made more than a dozen Marvel movies in Georgia. "Sinners," one of the year's biggest movies, was made in Louisiana.

But there's a clear trend in international production, driven by lower labor costs and tax incentives. Production spending in the US fell by 28% between 2021 and 2024, but rose just about everywhere else. "Thunderbolts," Marvel's most recent movie, is also set to be the last one filmed in Georgia for the foreseeable future — most of Marvel's production has moved to London.

So what would Trump's plan do to correct that? No one seems to have any clue.

"Hollywood studio executives scrambled Sunday night to determine what the announcement would mean for their business," The Wall Street Journal reports. "As is often the case with Mr. Trump's declarations on social media, it was not entirely clear what he was talking about," The New York Times deadpans. Stocks of studios and streamers like Netflix and Warner Bros. Discovery were down Monday morning.

If you take Trump's post at face value, it does indeed pose all kinds of questions. Like: Would the tariffs apply to American-owned/produced movies, or to movies from studios all over the world? Would it apply to American productions that are mostly filmed in the US but have some scenes shot in other countries? What about movies where some postproduction work, like visual effects, is handled outside the US?

And at the most basic: How, exactly, do you tariff a movie or TV show? They don't arrive in this country via cargo ships or planes. US Customs and Border Protection doesn't sign off on their import.

My sneaking suspicion is that Trump doesn't know, either. It's just that he seems to think tariffs are the solution to just about any problem.

Otherwise, if Trump were truly concerned about encouraging more domestic film (and TV) production, he might go about it the way just about everyone else does: with tax breaks and other financial incentives.

Which, it turns out, is exactly the pitch Trump heard from the actor Jon Voight and his manager, Steven Paul, this weekend, per Bloomberg. Voight — one of three actors Trump said earlier this year would be his "special ambassadors" to bring back work to Hollywood — and Paul spent time with Trump at Mar-a-Lago, and suggested a pretty normal plan, Bloomberg says: "more federal tax incentives for US film and TV production," which involves "expanding existing tax credits and bringing back ones that have expired."

Voight and Paul didn't propose tariffs, Bloomberg reports. But Trump did. So here we are. Let's see if it goes anywhere.

Read the original article on Business Insider