Trump’s Tariffs: The Shocking Impact on Hollywood’s Future

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  • Canada’s Cinematic Future Is in Jeopardy
  • California in the Crosshairs
  • Execs Curry Favor as the President Plays Favorites

By 2024, Donald Trump was already shunned by the celebrity community, and it seems unlikely he will gain any new allies soon given his executive orders. If you were hoping for a respite from the cultural conflict in entertainment, I’m sorry to say there is no such haven. Following his election as US President, Trump implemented several protectionist policies, one of which was the Canadian tariff executive order (currently on hold at the time of writing). This order has caused a chill down the spines of Canadians, potentially disrupting decades-old business relationships and funding agreements. The landscape of cinema may not only change visually but also in terms of which films are produced and who produces them.

It’s essential to understand that producing movies or TV shows is a complex process with numerous players involved, such as various companies, subsidiaries, distributors, trade groups, contractors, lawyers, crew members (and unions), and tax consultants who play a significant role in reducing costs for studios. The British Film Institute Chairwoman, Jay Hunt, has issued a cautionary statement that the British film industry could suffer if US funding is withdrawn, as reported by The Hollywood Reporter. Additionally, China’s potential ban on US films could further decrease the number of blockbusters being made. In Canada, the entertainment sector is preparing for a challenging four years as they navigate the consequences of international leaders’ power struggles.

Canada’s Cinematic Future Is in Jeopardy

As someone who’s in the know, I can confidently say that a good chunk of major Hollywood films and TV series are actually filmed right here in Canada – it’s a hidden gem for budget-conscious producers! For instance, you might be surprised to learn that the iconic cityscape of New York was just a clever set in ‘American Psycho’, the breathtaking landscapes of ‘Brokeback Mountain’ were actually located in Alberta, and Leo DiCaprio never actually set foot in France during the filming of ‘Catch Me If You Can’. But why you ask? Well, it’s due to our attractive tax incentives that have been a major draw for filmmakers seeking affordable locations and labor. However, according to CNBC, these tax breaks could be under threat with the implementation of Trump tariffs, potentially making Canada less appealing to this industry. This means we might see more casualties in the international economic policy arena.

The dominance of Canada as a popular location for Hollywood productions may be waning. Competitor US film sites such as New Jersey and Louisiana have devised incentive-based programs to lure production work from their northern neighbors, Canada. The ongoing trade dispute between the U.S. and Canada offers these rivals additional opportunities to seize jobs. For instance, “Oppenheimer” was filmed in nearby New Mexico, receiving a generous 40% tax break from director Christopher Nolan, as reported by Entertainment Partners. In a glimmer of hope, Canadian crews might manage to survive if the Canadian currency significantly weakens, enticing studios to stay and benefit from devaluation rather than returning to Hollywood.

California in the Crosshairs

Regarding California’s film industry, it has been struggling due to economic downturns, health crises, and a saturation of superhero movies. Recently, The LA Times reported that politicians are scrambling for funding, anticipating potential Chinese restrictions on movie imports as trade tensions with China escalate. In essence, the industry is so large that it could collapse without intervention. While the idea of state subsidies might sound extreme, it’s actually quite common. Countries like Europe have historically used taxpayer funds to support their film industry and have set import quotas to counterbalance what they perceive as American dominance. This trade dispute, in reality, can be traced back to the era of silent films.

Lobbyists from the Motion Picture Association are facing a challenging task as they prepare to appeal to every Republican they encounter, expressing enthusiasm for collaborating with the Trump administration on diverse issues critical to the film, television, and streaming sector. This industry sustains over 2.7 million American jobs, stimulates more than 240,000 businesses in towns and cities nationwide, and distributes approximately $242 billion in annual wages to its workforce. If you’ve been puzzled about the disappearance of Sebastian Stan’s recent film with Donald Trump, The Apprentice, don’t dwell on it too much; the reason is fairly clear.

Execs Curry Favor as the President Plays Favorites

In the long run, it appears that certain regions might find themselves competing with each other, trying to attract film studios to shoot in their cities. This situation could arise if current trends continue. As for Trump, his actions could vary significantly depending on his mood or the influence of a particular billionaire at any given time. He may even intervene to help California financially, which would be beneficial for them. Interestingly, Hollywood seems willing to court Trump when it benefits their long-term goals, as evidenced by the Amazon Prime Video-Brett Ratner documentary about Melania Trump.

Instead of it: On the contrary, reports from THR suggest that Canada could find itself in a small-scale conflict with California, as President Trump contemplates whether to antagonize Canadian Prime Minister Justin Trudeau or Governor Gavin Newsom of California. After years of expressing their opinions freely, Hollywood executives are finding themselves in a difficult position, needing to act as if the last eight years never took place, as the entertainment industry adapts and accepts Trump’s presidency. Brace yourselves, things are about to become unusual.

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2025-02-10 04:02