What happened
Hollywood executives and unions said Monday they appreciated President Donald Trump's help in bringing moviemaking back to Los Angeles but were confused by his proposal, posted late Sunday on social media, for a "100% tariff" on movies "coming into" the U.S. "that are produced in foreign lands." California Gov. Gavin Newsom (D) said Monday night he was "eager to partner with" Trump to "Make America Film Again" with a $7.5 billion federal film tax credit, the fix favored by Hollywood.
Who said what
Film and TV production in Los Angeles has been declining for years as other countries — and other states, including Georgia and New York — lured away moviemakers with generous tax breaks and cheaper labor. The industry has been "pleading with politicians for years to help stem the exodus," The Wall Street Journal said, but tariffs aren't "what Hollywood had in mind."
It's not clear what would constitute a "foreign" production, how the tariffs would be applied or how Trump would tax digital streaming services. And expanding his "trade war to include services" exposes Hollywood and other service-based industries to "potentially punishing foreign retaliation," The Washington Post said. "Americans routinely sell foreign customers more services than they buy," and Hollywood alone had a "$15.3 billion trade surplus in 2023," earning 70% of box office revenues from overseas.
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What next?
White House spokesperson Kush Desai said Monday that the administration was "exploring all options" and "no final decisions on foreign film tariffs have been made."
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