Producing : 100% Tariffs on Foreign-Made Films. What Does This Mean for Hollywood? by Sandra Isabel Correia

Hi, Sandra Isabel Correia. President Trump said, "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated." I see his point, but I'm not sure if he has the authority to institute these tariffs or not, and I'm not sure if the tariffs would make things better or worse. What I think would help is the U.S. offering better tax incentives to keep more productions in the country. If the tariffs happen, I do think they will impact the U.S. movie industry and the global movie industry.

What took him so long?

The real question is, "what is a foreign film?"

Astonishingly, this prescient post from Geoffroy Faugerolas pretty much answers that question. https://www.stage32.com/lounge/vip/The-Global-Content-Revolution-Why-Int...

The next question becomes, what happens with movies like Disney's Wicked ?

It was already quite hard to get our European movies into the US. Time will point out if the opposite will happen for bringing our movies even more into China, India and Europe itself. By the way I don't think its fair to talk about stealing as Trump does in the video. its just open world market and competing. The US also has incentives for filmmakers.

Danny Range you better should have voted because Trump's take on this is stupid. He's clearing the path for his own few people and you and I are not one of them.

I agree with you, Maurice Vaughan. As a strategy manager, I believe that if President Trump or his administration were to introduce stronger tax incentives to retain more production within the USA, similar to what we implement in Europe, it could significantly expand domestic production. Currently, we see much of the U.S. filmmaking industry shifting production to Europe while keeping distribution within their home market. With the introduction of these 100% tariffs, the situation becomes more uncertain, and I don’t have a definitive answer. That is why I am bringing this discussion to our community: we must address these issues in the real world.

You are right, in my opinion, Morgan Aitken. " What is a "foreign film'? We live in a global world, and it seems they want to make the USA a closed nation to the world. That post from Geoff says everything. We will have to wait and see what happens with Disney's Wicked. I believe this isn't good for the industry in the United States, but I do not have enough information to say for sure. Thank you for sharing! :)

Industry is changing Willem Elzenga 2, and this opens doors for European industry to expand more for other markets, like South Korea, which is expanding. Thanks for sharing.

Great points Danny Range. Business negotiations can be intense, and the effects of tariffs are unpredictable. Revitalizing industries like steel is crucial, but forcing film production back to the U.S. through trade policies might have unintended consequences. Incentives could work better. Creativity thrives when politics steps back, and Hollywood should remain a space for filmmakers to lead the way. This is what I think, but I don't have an opinion yet. Thanks for sharing.

Please Willem Elzenga 2, I request that we all engage in diplomacy during this conversation. Thank you.

We are aligned Danny Range and I am happy for that. Let’s wait for the numbers and how will develop in reality. Thanks for sharing with us.

There is a lot more that goes into this than just tax incentives. Other aspects - and there are many - are the costs of living and - a big one - health insurance - in countires around the world. In countries that have socialized medicine, crews generally make less money as that is not something they are responsible for as citizens where they live. Rents are also lower. This allows for local production entities to budget with factors like that in mind. The cost of living and the cost of medical insurance/services are but two of many factors that need to be considered when really looking at the global industry and why certain areas are blossoming. I am not in any way making this political - I am all about production and the creative community - I am just relaying a math reality that I have heard from several film commissioners and guild leaders. America needs stronger incentives. California needs stronger incentives. However, it is not the whole picture. There are many ingrediants in the stew that is the global film industry right now so I also am not certain how something like this may have an effect. What is true, is that film and TV production is booming all over the globe and that is a truly exciting thing for creatives everywhere.

Hi all, I'm Randall Scott White, a new moderator here in the Producers Lounge. I was thinking about this topic earlier... and I'm wondering if all the jobs being lost to AI will be able to recover with more production moving back the the USA, not knowing how those scales will tip out in the next 3 years.

Great topic, lots of possible outcomes.

Great points, my good friend, Sam Sokolow . Tax incentives are just one factor in a much bigger equation. Cost of living, healthcare, and infrastructure all play a role in shaping global production hubs. While stronger U.S. incentives could help, this tariff policy adds uncertainty. The industry is booming worldwide, and adaptation will be key. Do you think the U.S. will step up to stay competitive?

Hi Randall Scott White, nice to e-meet you and welcome :) That’s a great vision. With AI reshaping the job market and production potentially shifting back to the U.S., it’s hard to predict how these scales will balance out over the next few years. My question is: what happens to those people during that time?

I believe we’re witnessing a complete transformation of what "jobs" mean. In the future, I predict that individuals will become more autonomous as entrepreneurs, collaborating with others rather than depending on traditional production company structures. We will be our own leaders.

It’s an interesting gap; these three years could be a turning point for how people adapt and redefine their professional paths. We'll see what happens.

Thanks for posting this Sandra! I truly wish we could keep politics out of what it is we do here but... You can't throw a grenade into a room full of people and expect them not to jump. So, here we are.

There are many things that need to be examined and democratized across the industry and many of those things aren't unique to film. Healthcare, cost of living, insurance rates and coverage... the list is massive and too much to cover in a post so let's look at just some of the immediate impact issues.

First of all, Trump is taking his queues on this issue from Jon Voigt. Nuff said there.

In full disclosure, I took much of this from another discussion and added my own two cents but I wholeheartedly agree that if the U.S. were to impose a 100% tariff on all foreign movies coming into the country, here’s how it would likely impact the U.S. market, culture, and economy:

Economic Impact

On Consumers:

• Ticket prices for foreign films would likely rise or those films would be pulled from U.S. theaters and platforms altogether.

• Fewer foreign films would be distributed in the U.S. because distributors might find the cost prohibitive.

On Theaters & Streaming Platforms:

• U.S. theaters and streaming services that rely on international films (like art house cinemas, film festivals, or some streaming platforms) would lose access or face higher costs.

• Reduced variety could affect niche markets and companies catering to foreign film audiences.

On U.S. Film Industry:

• U.S. studios might see a short-term boost in market share domestically since there’d be less foreign competition.

• But international retaliation is likely — other countries might impose their own tariffs on U.S. movies, harming the export market for Hollywood, which makes billions annually from overseas markets like China, Europe, and India.

Cultural Impact

• American audiences would have reduced exposure to global cinema, limiting cultural exchange and awareness.

• Film festivals like Sundance or Tribeca would be affected if international films became costlier or scarcer.

Diplomatic & Trade Impact

• This move would almost certainly trigger trade disputes, possibly violating World Trade Organization (WTO) agreements on cultural products.

• Could escalate trade wars with major film-exporting countries like the U.K., France, South Korea, India, or Japan.

Who Would Benefit

• Large U.S. film studios like Disney, Warner Bros, Paramount might benefit temporarily with less foreign competition.

• American indie films could fill some of the void in theaters and on streaming services.

Who Would Lose

• Independent theaters, international film distributors, multicultural communities, streaming services specializing in world cinema, and American audiences who appreciate global storytelling.

• The U.S. film industry overall if retaliatory tariffs block American blockbusters from foreign markets.

Bottom line:

A 100% tariff on foreign films would reduce film diversity in the U.S., possibly spark trade retaliation harming U.S. film exports, and hurt international cultural exchange. It might temporarily protect domestic studios but at the cost of international goodwill and long-term profitability.

Most of us Americans oppose dictatorship. We want choice. Overall the big studios will win, Once again, the American public loses.

Extremely useful breakdown on the effects of a 100% tariff on foreign film, Michael Fitzer, MFA ! Thanks for posting this.

I ran into this Linkedin post by Manuel Urrutia - for those reacting to the proposed idea of instituting tariffs on movies made abroad. A few things are worth clarifying:

➤ The U.S. film industry isn’t dying a very fast death.

Box office revenue dropped sharply in 2020 due to the pandemic and has not rebounded to pre-pandemic levels, but the bigger trend is a shift in consumer behavior toward streaming, YouTube, and social platforms, not a collapse of U.S. filmmaking market share.

➤ Global filmmaking is a strength, not a problem.

Studios film abroad to stay competitive. The U.S. remains by far the world’s largest net exporter of filmed entertainment. Forcing all production to happen domestically would raise costs and weaken our global leadership.

➤ Retaliation risk is real.

Tariffs on international film production could provoke other countries to impose tariffs on U.S. services — a far greater threat to American exports than any perceived gain from reshoring production.

➤ Tariffs on movies are impractical.

Film production is global by nature. Projects are filmed and produced across countries to access natural locations, specialized talent, and cost efficiencies. Assigning a “country of origin” to a movie isn’t straightforward.

➤ Incentives, not penalties.

If the goal is to encourage more domestic production, the focus should be on modernizing federal and state-level incentive programs, not introducing blunt tools like tariffs that could backfire economically and diplomatically.

There is so much wrong with this idea. To start, anyone who thinks of putting tariffs etc. on films, foreign or domestic, doesn't have a clue about what films are, the structure(s) of the industry, how they are financed and shot, where they make money and why, who actually benefits or loses by such actions, how (UN)enforcable they would be... not to mention the ACTUAL motivations for barriers to content and film incentives from outside the country and the fact that in the United States we have constitutionally guaranteed freedom of speech, which proposed tariffs would clearly violate on several grounds. While Netflix share value took a huge dump on speculation that these would harm it, legal analysts are pretty uniform in saying can't happen, won't happen. As an entertainment attorney for for 30 years now, I agree. No one hold your breath.... not going to stop the administration from trying of course...

Thank you Sandra Isabel Correia for bringing this topic to light. I love our Stage 32 Community and the fact that we can have the hard conversations with constructiveness and respect. These are the things that can have an affect on all creatives for years to come. Something you said that really resonated with me was "The next 3 years could be a turning point of how people adapt and redefine their professional paths". I think not only professional paths but their personal lives as well. There is no time like the present for reflection, as creatives what kind of stories are we creating to bring about change. If art imitates life, we have to start creating the blueprint. We no longer have the luxury for stories of Escapism. Stories of characters with different POV's working together for the greater good is paramount.

I have given this new found information much thought in the 24 hours it has been. While the proposed tariffs present significant hurdles, they also underscore the importance of advocating for policies that support the global exchange of ideas and creativity. Projects like mine: Echoes of Asgard and many others exemplify the enriching narratives that emerge from international collaboration, and efforts will continue to ensure such stories find their audience.

I find it important to recall that any President of the USA, should also be very aware that we are still protected under the constitution of freedom of speech and expression.

Also referencing the Berman Amendment of 1988 which explicitly prohibits the President from regulating or imposing tariffs on Informational materials including film.

I encourage fellow creatives to continue embracing international influences and collaborations, despite political challenges, just proceed with caution in regards to any other laws affiliated, in regards to Visas and anything else that may be found.

For now, what I can say is there are obvious concerns for business wellbeing in the industry, occurring in the US. It's going to be a very sensitive topic(s) of relevant concerns, particularly "IF" it appears to deliberately or unfairly affect progress, culture, even other matters including constitution etc

We certainly have to demonstrate connectivity to the situation as our fellow creatives, ultimately criteria as also our very own!

Ultimately my opinion, prayer to God almighty!!!

It will be the end of Hollywood as most movies are made abroad or use abroad locations in their stories. The fun part with James Bond is that he can travel anywhere. If he can only stay in America, it won't be much fun. It would be better if movie makers get a 50% tax cut if they make their movies in the US, like Australia does, among others.

Michael Fitzer, MFA, I have to say this entire dissection is a masterclass. The depth and clarity you bring to this issue are truly impressive, and I appreciate immensely that you took the time to break it down so thoroughly. Your analysis captures the complexity of the situation in a way that makes it impossible to ignore the ripple effects across the industry, culture, and global markets.

It’s frustrating to see how quickly political interests can manipulate industries that thrive on artistic freedom and global exchange. The potential consequences you outlined: economic, cultural, and diplomatic—make it clear that this isn’t just about movies; it’s about maintaining an interconnected creative world where ideas and stories transcend borders.

Thank you for putting this together. Conversations like this push us toward a better understanding of the stakes involved.

Willem Elzenga 2, I really appreciate you sharing this post from Manuel Urrutia. It lays out the reality of the situation with a level of clarity that’s hard to argue with. Your breakdown reinforces something crucial: the U.S. film industry isn’t facing collapse but rather an evolution in consumer habits.

The points on global filmmaking and the impracticality of assigning a “country of origin” to a movie are spot on. Film has always been a collaborative, international effort, and forcing artificial barriers could do far more harm than good. The retaliation risks you outlined alone make this a dangerous path for American exports.

At the end of the day, incentivizing domestic production makes far more sense than using punitive measures that could backfire in ways we can’t afford. Thanks for bringing these perspectives to light. It’s a conversation we need to keep having.

Shadow Dragu-Mihai, Esq., Ipg , you’re absolutely right. This idea is flawed from every angle. Legal precedent makes it clear this won’t hold up, but that won’t stop the administration from trying. The industry knows better, but speculation alone can cause unnecessary disruption. No one should be holding their breath.

Angela Miller Lawrence, I truly appreciate your perspective and the depth of your reflection. Our Stage 32 Community is indeed special. Allows us to tackle complex issues with respect and constructiveness, which is so important for shaping the future of creatives. Our challenges as human beings will be bigger than we envision. The next three years will be pivotal, not just in how we adapt professionally, but also in how we shape narratives that drive meaningful change. Art has always been a reflection of life, and now, more than ever, we have the responsibility to craft stories that push for collaboration, understanding, and a vision of a better world.

Escapism has its place, but stories that center diverse perspectives working toward the greater good feel more crucial than ever. We are the storytellers. Let’s create the blueprint for the change we want to see. We have that ability and it's in our hands. I am aligned with you :))

You are so right Chris Thane. "I find it important to recall that any President of the USA, should also be very aware that we are still protected under the constitution of freedom of speech and expression." Is the truth. No one is above us, because we have our own power and free will to make the choices of what we want to live. The same goes for us in Portugal. Thank you for sharing.

Eon C. Rambally, I agree with you, and we must stay strong and unite.

I love that we can travel with Bond, and also we can achieve other realms with Star Wars. :) Thank you for sharing, Raymond Zachariasse .

Luckily we don't have those tariffs. My movie is made in Portugal. I think one of the main attractions to watch movies is the diversity of countries and actors. Ofcourse, when a story is situated in San Francisco, it by all means should be made there. But a lot of movies use sound stages too and they can be located everywhere. As far as I know, The Netherlands is among the countries having a good tx envoirenment (and we have great healthcare), so always welcome to shoot here :)

Raymond Zachariasse, you came to Lisbon to shooting your movie? I love that! Why you chose Lisbon?

Sandra Isabel Correia actually through a different social media site for screenwriters someone approached me. He is from Portugal. He liked my short Up/Down and wanted to film it. After that we stayed in contact and now the movie is done. It will serve as a teaser for a feature which I haven't written yet :) The funny thing is, that other platform is based around horror and my screenplay is not horror at all. It is a thriller though. But this is how it can work too. Up/Down is my most awarded screenplay, while to me it's my least favorite haha.

That’s really cool Raymond Zachariasse. We have an amazing Filmmaking community in Portugal, not only Portuguese, but specifically International filmmakers living here. Happy to know and thanks for sharing it. I am cheering for your feature Up/Down and you success:))

Personally I will like to catch up, know or define by stipulations etc. as to what compelled the relevant individuals to approach The President, with such a sense of "sudden" urgency and importance, resulting in such "historical details" in the news broadcast.

Eon C. Rambally, we'll see what comes next. Thanks for sharing.

IMAGINE THAT. 2025? and counting? Still. Wars.

Sherri ZImmerman, it's the time for us to stand up :))

Sandra Isabel Correia - SURELY BUT IN A DEEP MEDITATIVE STATE with ARMS DOWN> I'm looking to just change into another DIMENSION all together.... LOL seriously. ALREADY HALF WAY THERE....

Sherri ZImmerman, and we are lucky that we can stay at 3D or move to 4D or 5D :))) I understand you sweetie ;))

I wish it goes the best it can be for all of you Elmare Hendricks. This times aren’t easy, and we do the best we can. I am with you :))

Yes☆ Sandra Isabel **** 4D or 5D thank you