Lights, tariffs, inaction

Donald Trump's plan for Hollywood is full of plot holes. But when it comes to the hidden propaganda in movies, could he have a point?

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As always with pronouncements by President Trump, once you had peeled away the xenophobia, removed the stew of resentment, ignored the sheer idiocy and asterisked the possible illegality, there was a small kernel of truth to his posting on Truth Social last Sunday. "The Movie Industry in America is DYING a very fast death," he wrote, pointing to the nefarious tax breaks other countries gave film-makers as "a National Security threat" and proposing an 100% tariff on films made oversees. "It is, in addition to everything else, messaging and propaganda! WE WANT MOVIES MADE IN AMERICA AGAIN!"

How would a 100% tariff on films made oversees work? Just movies shot overseas? What about movies set overseas? And who would pay? How do you impose tariffs on goods without a port of entry? "Commerce is figuring it out," said a White House official. In fact, movies are listed as an exception to presidential authority under the International Emergency Economic Powers Act, which gives the president authority to address national security threats, so it is likely the lawyers would end up figuring it out, if Trump's plan went ahead. But, many executives in Hollywood are quietly nodding agreement. It is true that Los Angeles has seen feature movie shoot days plummet from 3,901 in 2017 to just 2,403 in 2024, a 38% drop. Many major franchises such as Avatar and Mission: Impossible are shot mostly overseas, where the lure of lucrative tax breaks offset such minor inconveniences as the incursion of some Derbyshire sheep into one of Tom Cruise's paragliding set-pieces.