How Hollywood is trying to handle Trump’s potential movie tariffs

Hollywood braces for potential movie tariffs from Trump's administration, seeking alternative solutions.

: The Trump administration's announcement of potential tariffs on international movie productions has caused significant concern among Hollywood's major studios. Leaders from Universal Pictures, Disney, and Warner Bros. Discovery held a Zoom meeting with Charles Rivkin, the Motion Picture Association chief, to discuss strategies for addressing the administration's plans. California Attorney General Rob Bonta suggested the tariffs could potentially infringe on First Amendment rights, as he believes the actions may specifically target California, a politically blue state. The industry remains uncertain about the scope of the tariffs and how they will impact both Hollywood productions and broader international collaborations.

The United States film industry is facing turmoil following President Donald Trump's proposal for new tariffs against international film productions. The announcement was met with widespread dismay in Hollywood, as many within the industry fear the financial impact these tariffs could bring. A Zoom call was convened, including heads from major studios such as Universal Pictures, Disney, and Warner Bros. Discovery. During this meeting, they strategized on effectively communicating the complexities of film production and financing to the White House. Charles Rivkin, MPA's CEO, emphasized that many blockbusters involve substantial international collaboration, often for tax incentives, and warned applying tariffs could backfire.

California Attorney General Rob Bonta voiced concerns about the constitutionality of the tariffs. In an interview with the Hollywood Reporter, he suggested that the tariffs might violate the First Amendment, arguing they are a targeted response to a state resistant to the president. Bonta asserted, "[Trump] is intentionally targeting a blue state that doesn’t seem to be supportive of him," implying the policy might be more political than practical. The state's governor, Gavin Newsom, and organizations like 'Stay in LA' are advocating for local solutions to keep productions domestic, though Trump has yet to respond to these initiatives.

Financial uncertainties loom large, with studio heads worried about potential penalties that could arise. They are in the dark about the specific productions these tariffs might cover, questioning whether television shows or streaming services will also face charges. The scope of the tariffs and potential international retaliatory measures remain unknown, forming 'a cloud of uncertainty' as described by a Disney executive who preferred anonymity.

Additionally, the Second Trump administration has a track record of clashing with entities that oppose its directives. A recent example includes the confrontation with Harvard University over compliance with federal demands. Such precedents cause concern within Hollywood about possible punitive actions should studios resist the tariffs. California Attorney General Bonta is reportedly exploring legal avenues based on First Amendment rights, viewing this as the only viable method to safeguard the industry at present.

The overarching sentiment within Hollywood is one of frustration and urgency, with many executives keeping dialogues ongoing but discreet to avoid aggravating tensions with the administration. As the world watches, the entertainment industry braces itself for unclear times, gathering support from legal experts and political allies in hopes of counteracting potential negative impacts on one of America's flagships.

Sources: Gizmodo, Variety, Hollywood Reporter

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