Earlier this week, the American movie industry faced upheaval when President Donald Trump announced tariffs on international film productions. This news was met with concern and negativity from Hollywood and movie enthusiasts, despite the president’s assertion that it would benefit the local industry. Hollywood is now taking action due to the lack of clarity on how these tariffs will be implemented.
According to a recent report from Variety, major studio leaders, including those from Universal Pictures, Disney, and Warner Bros. Discovery, participated in a Zoom call with Motion Picture Association Chief Charles Rivkin. The discussion focused on finding a way to convey to the White House the complexities of the film industry and the challenges of imposing tariffs on movies. Films are collaborative efforts, often involving international teams for financing and tax benefits. The studio executives hope to communicate to President Trump that the U.S. film industry contributes positively to the economy and that his concerns primarily affect California.
California’s Attorney General, Rob Bonta, expressed to the Hollywood Reporter that these tariffs might present a First Amendment issue. He suggested that the president targeted a blue state that seems unsupportive of him. Shortly after the tariff announcement, Trump criticized Governor Gavin Newsom, calling him “grossly incompetent” and accusing him of allowing the industry to be overtaken by other countries. Meanwhile, Governor Newsom and the Stay in LA organization have independently proposed ways to retain productions in the state and across America, though the president has yet to engage with them on a solution.
The Trump administration has a history of challenging groups that oppose its directives, as seen in its recent dispute with Harvard University over funding. Bonta mentioned that his office is exploring potential legal actions based on a First Amendment violation, aiming to protect the state and its residents, including Hollywood. It remains uncertain whether such a legal argument would succeed, but currently, it is the only strategy available to Bonta’s office.
Studio executives are maintaining a low profile to avoid financial repercussions and remain uncertain about the scope of the tariffs. It is unclear if these restrictions will apply solely to Hollywood productions or extend to TV shows and streaming films. Additionally, the potential response from international entities if the administration proceeds with its plans is still unknown.
