Trump Plans Discussion on Film Industry Tax Incentives, Nears Tariff Decision

Former President Donald Trump proposed a 100 percent tariff on foreign-made films to boost U.S. film production, but the White House quickly downplayed the idea, noting that no final decisions had been made. The proposal sparked widespread criticism from Hollywood and industry experts, who warned it could be unworkable due to the global nature of modern filmmaking and could severely harm an industry still recovering from the pandemic. Shares in entertainment companies like Netflix and Disney fell as investors reacted to the uncertainty and potential economic impact. Industry leaders and union representatives argued that federal tax incentives, rather than tariffs, would be a more effective way to encourage domestic film production. Trump has since softened his stance, emphasizing that he does not intend to harm the industry and plans to consult with film executives. California Governor Gavin Newsom and others have advocated for expanded tax credits to keep production in the U.S., underscoring a preference for incentives over restrictive trade measures.