"Makes No Cents": Film Industry Baffled by Trump's Tariff Proposal on Foreign Movies
Absurd Scenario Offers No Logical Explanation - "US film industry finds the tariff announcement perplexing" or "Tariff announcement leaves US film industry puzzled" or "US film industry questions Trump's tariff announcement"
Elbow grease, not $.
In a tweetstorm worthy of a blockbuster, former President The Donald dropped a bombshell Sunday: he intends to slap a whopping 100 percent tariff on all films entering the U.S. from abroad. His reasoning? To revive domestic movie-making in the good ol’ USA.
The film industry, caught off guard, is struggling to make sense of this sudden curveball, with stocks plummeting and looming questions about whether this measure satisfies the IRS's understanding of entertainment as intellectual property.
Film industry lawyer Handel voiced his skepticism, asking, "If Tom Cruise is scaling the Eiffel Tower, are we gonna shoot it in Vegas? Seems brainless to me."
Nonetheless, if the U.S. administration could somehow engineer a collection system for these tariffs, the consequences for American movie-making might not be all positive. Handel expects a reduction in production, increased film prices, and fewer films available for theaters and streamers.
All big-name Hollywood players were keeping mum Monday, so it's uncertain how they feel about the idea that's eerily reminiscent of Trump's "Make America Great Again" campaign. The film industry, however, has been on a rough patch for some time now, reeling from months of strikes and changing consumer habits due to the pandemic.
According to the Motion Picture Association, the film industry accounts for over 2.3 million jobs, pumping a staggering $279 billion into the U.S. economy in 2022. It's also a major export champ, with exports thrice those of imports. However, 2023 was a turbulent year, with production costs in 2024 projected to drop 26 percent – and the overwhelming preference for film production locations being hotspots outside the U.S..
An industry insider recently stated that imposing tariffs may "strangle the rest of the film business," suggesting a more inch-by-inch approach via tax incentives for domestic productions might be wiser.
A quick rundown of the possible repercussions of the proposed tariff: reduced variety of films, higher prices for consumers, fractured cultural exchange, and potential backlash from foreign countries slapping counter-tariffs. All this might trigger economic losses, trade tensions, and a dent in America's global reputation.
In short, the film industry's reaction to Trump's grand plan resembles the reaction of the general public when confronted with a Rube Goldberg contraption during a movie scene – utter bafflement and bewilderment.
- The US film industry, initially skeptical of Trump's tariff proposal on foreign movies, is apprehensive about the consequences.
- Studios are uncertain about how they will finance their businesses due to the policy-and-legislation surrounding the tariffs and the ensuing uncertainty.
- Industry lawyer Handel posed a question, asking if Tom Cruise will scale the Eiffel Tower in Las Vegas instead as a result of the potential tariff increase.
- The film industry, which is a significant contributor to the general news due to its economic impact on America, could face a reduction in the variety of films, increased film prices, and fewer films available for theaters and streamers if the tariff is implemented.
- Despite the rough patch the film industry has been navigating due to the pandemic and changing consumer habits, some industry insiders believe that imposing tariffs could potentially "strangle the rest of the film business." Instead, they suggest a more gradual approach via tax incentives for domestic productions.
