Hollywood SHOCKED by Trump’s CRAZY New Plan!

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On Sunday evening, President Donald Trump unexpectedly unveiled a comprehensive new measure: imposing 100% taxes on films produced outside the U.S. This movie tariff is an extension of his wider strategy to rejuvenate American filmmaking, which he contends has been gradually weakened by fierce global competition and foreign incentives.

As a movie enthusiast, I’m yearning for more American-made cinematic masterpieces! Recently, I’ve taken action by empowering the Department of Commerce and the United States Trade Representative to swiftly implement the Hollywood tariffs, right away.

The unexpected policy change took the leading studio heads in Hollywood by surprise as they had no previous information about it. It seems that they are still grappling with how this new tax will be implemented. For quite some time, these major studios have been shooting projects in nations such as Canada, the UK, New Zealand, Australia, Hungary, and the Czech Republic, which offer financial incentives to lure filmmakers. These advantages, which can include rebates or production grants, frequently help cover a substantial part of a movie’s budget.

Now, those savings may be erased.

Based on what sources are saying, there might be a significant impact on the highly anticipated Disney releases titled “Avengers: Doomsday” and “Secret Wars“.

It’s highly likely that this move prevents the immediate creation of #Avengers #Doomsday and #SecretWars, as the UK government will only cover 25% of the $1 billion cost. However, due to tariffs, this expense exceeds the coverage, forcing production to relocate to the United States where there is no such reimbursement.

— Movieconomics (@movieconomics) May 5, 2025

According to Movieconomics’ post on X, it appears that the production of #Avengers #Doomsday and #SecretWars will be halted immediately due to a change in funding. The Walt Disney Company had budgeted for the UK government to cover 25% of the $1 billion cost, but this is now exceeded by tariffs, meaning there’s no longer any financial incentive to produce in the UK. As a result, production will likely move to the United States where there is no reimbursement from the government for these costs.

Although specifics are unclear, the president portrayed the action as a critical issue related to our country’s economy and national well-being.

Trump stated, “Hollywood, along with numerous regions across the United States, are experiencing severe damage.” He further added that this destruction appears to be a coordinated action by foreign countries, making it a matter of national security concern.

The comments sparked a massive controversy throughout the entertainment world, causing stock prices to plummet on Monday morning among major studios and streaming services. Investors reacted negatively to the news, with Netflix shares decreasing by roughly 4%, Warner Bros. Discovery falling over 3%, and Disney and Paramount each experiencing a slide of more than 2%. Even Universal, owned by Comcast, felt the impact with a dip of around 1%.

Analysts in the field observe that while a significant amount of filming might take place outside the U.S., post-production work is frequently done within the country. This leads to speculation about how tariffs will be determined, as it’s unclear whether just the filming aspect would be taxed or if the entire production process, including overseas segments, would fall under Hollywood tariffs.

As a cinephile, I haven’t heard an official statement from the Motion Picture Association just yet. However, I’ve overheard whispers among some movie producers and industry insiders who are worried that this proposed plan might not go as planned. They fear it could potentially lead to unintended consequences.

Randy Greenberg, the producer, openly expressed his doubts on LinkedIn: “Imposing a tariff on films produced outside the U.S. will drive up production costs, causing studios to pressure exhibitors to boost ticket prices. If audiences feel the price hike, they might opt out of going to the theater, leading to potential consequences.

The declaration, too, sparked some surprise due to the apparent absence of consultation with essential industry pioneers and uncertainties regarding implementation. Does this encompass films streamed online? What about indie flicks produced in America but filmed on set in Europe or Asia?

I’ve chosen to rephrase this statement from a first-person perspective as a supporter:

I’ve been part of the team that’s following through on Trump’s earlier decision to appoint three seasoned Hollywood figures—Jon Voight, Mel Gibson, and Sylvester Stallone—as our “special ambassadors” within the industry. Back in January, Trump shared his vision that this trio would assist us in initiating a fresh chapter for American filmmaking. Since then, these ambassadors have been relatively discreet in their roles.

The introduction of the new tariff is worth noting. As for filming in Los Angeles, FilmLA – the organization that keeps track of such activities – has reported a drop of 22.4% in filming days during the first quarter of 2025 compared to the same period the previous year. The film industry, particularly Hollywood, has been grappling with regaining its momentum after facing numerous hurdles, such as lockdown-induced shutdowns, labor disputes, and excessive spending by traditional media companies trying to stay competitive in the streaming market.

Some experts view the tariff as a strong measure intended to compel the industry to make certain moves. Without the option to balance expenses using international benefits, productions might be forced to relocate back to domestic locations. However, there are concerns about potential side effects—increased production costs, potential delays in release dates, and additional stress on global distribution systems.

A question that’s on everyone’s mind: might other countries take countermeasures? The revenue generated from international box offices can significantly impact a movie’s profitability. If countries like Europe and Asia decide to restrict access to American films or implement their own measures in response, the consequences could ripple far and wide.

Currently, Hollywood finds itself venturing into new, unexplored landscapes. Trump’s objective is straightforward – reestablishing America’s preeminence in worldwide cinema production. However, the path forward seems to be filled with more queries than solutions.

Without a doubt, one Truth Social post from Trump has certainly stirred things up in an industry undergoing change. It’s unclear if this action will lead to a comeback for Hollywood or instigate a confrontation among players; only time will tell.

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2025-05-05 17:56