The Town with Matthew Belloni Trump's Movie Tariff Bombshell and Hollywood’s Freak-Out
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May 5, 2025 
Lucas Shaw, a Bloomberg reporter specializing in media and entertainment, joins to discuss Donald Trump's shocking proposal for tariffs on foreign films. They explore the potentially disastrous consequences for Hollywood, including fears from producers about job security and international co-productions. The conversation delves into the complexities of film categorization, federal tax incentives versus tariffs, and the competitive landscape of U.S. versus international filming locations. Will this lead to innovative solutions for the industry, or just chaos?
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Impracticality of Movie Tariffs
- Trump's announcement of a 100% tariff on foreign-produced movies is impractical because movies are mainly services, not physical goods.
- This tariff idea raises many logistical and business questions about how and what would be taxed within movie productions.
Complexity of Tariff Targets
- Movies shot abroad but owned by US studios complicate the notion of tariffs because they remain US products.
- Tariffs on such movies risk retaliations that would disrupt Hollywood's global reach and finances.
Tax Incentives Drive Production Shifts
- The main driver for movies shifting overseas is competitive tax incentives, not low labor costs.
- US unions' higher costs contribute, but countries like the UK offer significant rebates that lure productions away.