Trump's 100% Tariff on Foreign Films Prompts Hollywood to Consider Voight's Plan and California Incentives
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President Donald Trump has proposed imposing a 100% tariff on movies produced outside the United States, aiming to bolster the American film industry. This proposal has led to a debate within Hollywood, with industry leaders expressing concerns over its potential impact on global production and distribution.
The proposed tariffs come amidst challenges such as the aftermath of the Covid-19 pandemic, labor strikes, and the shift towards streaming platforms. Hollywood fears that such tariffs could further destabilize the sector, potentially leading to decreased production and increased costs for consumers.
In response, Hollywood executives have strategized on how to address the issue. A special meeting was convened by the Motion Picture Association to discuss potential responses and explore alternatives like federal incentives to encourage domestic production. Actor Jon Voight's 7-point 'Make Hollywood Great Again' plan suggests expanding federal tax credits to bolster local filmmaking, including a 120% tariff on productions benefiting from foreign incentives.
The proposed tariffs have raised concerns about international backlash. Countries with significant film industries like Canada and the UK worry about economic disruption. The global nature of modern filmmaking, with productions often spanning multiple countries, complicates the implementation of such tariffs.
Despite the uncertainty, some in Hollywood see an opportunity to reform California's production incentives. With television production in Los Angeles down 58% from its 2021 peak, the industry is calling for structural changes to keep productions and jobs within the U.S. Governor Gavin Newsom has proposed a $7.5 billion federal program to increase California's tax credit cap from $330 million to $750 million.
Donald Trump’s bombshell tariff attack on foreign films has Aussie stars fearing it could spell the end of our local industry > https://t.co/kLDttxfZfK https://t.co/CDFN3FbieL
The leaders of the major Hollywood studios and streaming companies gathered on Zoom on Friday for a special meeting with Motion Picture Association chief Charlies Rivkin to strategize about how to address President Trump’s threatened film tariffs.
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