Overview

• President Trump announced a potential 100% tariff on films produced outside the U.S., citing national security and economic concerns, but clarified no final decision has been made.
• The proposal, inspired by actor Jon Voight, also includes federal incentives to boost domestic film production, but details remain unclear.
• California Governor Gavin Newsom countered with a $7.5 billion federal tax credit proposal, emphasizing incentives over tariffs to attract production back to the U.S.
• Industry groups and unions, including the Motion Picture Association and SAG-AFTRA, are lobbying for a federal domestic production incentive to be included in Congress's reconciliation tax bill.
• The UK government is in discussions with Washington to mitigate potential impacts, as Hollywood faces a 40% decline in Los Angeles production days since pre-pandemic levels.