Overview

• President Donald Trump has proposed a 100% tariff on foreign-made films to encourage domestic production, though no final decision has been made by the administration.
• Hollywood unions, including SAG-AFTRA and the Directors Guild of America, are lobbying Congress to extend Section 181 tax provisions and establish new federal incentives for U.S. film production.
• California Governor Gavin Newsom has proposed a $7.5 billion federal tax credit to support domestic filmmaking and is seeking collaboration with the Trump administration.
• Teamsters President Sean O’Brien supports the tariffs, arguing they could bring jobs back to the U.S., while some industry groups favor incentives over protectionist trade measures.
• The tariff announcement has caused stock prices of some Hollywood studios to dip, raising concerns over potential economic and trade repercussions.