Just one day later, Donald Trump revealed his plan to impose a 100 % tariff on “ie and all” films that were produced in “foreign lands”, California Governor Gavin News said on Monday that he wanted to cooperate with the president to create a 7.5 billion dollar tax incentive to help the film industry.
Many have pushed the industry for years to obtain a federal movie support to counter “fleeing production”, as film jobs have been lured with incentives in Canada, the United Kingdom and other places. In the United States, tax credit programs are currently being presented only at the state level.
Newsom said in a statement to diverse on monday. “Based on the successful state program, we are keen on partnership with the Trump administration to increase the promotion of local production and make America again.”
Although newsom is ready to work with Trump in this new tax motivation, Trump may not be very excited. On Monday, Trump captured a bullet in California statesman during a press conference of the Oval Office, which he considers “greatly incompetent” to allow the American cinema industry to slip.
“Our film industry has been destroyed by other countries,” said Trump. “Also by inefficiency. As in Los Angeles, the ruler is a greatly incompetent man. He was allowed to keep him away from, Y’Know, Hollywood. Hollywood does not do much of this work.”
Last October, newsom pledged to increase the California movie incentive from $ 330 million annually to $ 750 million. At that time, newsom suggested that Vice President Kamala Harris support, if the president elected a federal movie incentive. The proposed expansion of the state is working on its way through the state legislative body.
Senator Adam Chef in California said on Monday that he is working on legislation to implement a federal movie incentive, and said he was looking to work with Republicans on this issue. Hollywood unions will also welcome tax credit at the national level to compete directly with other countries.
The NEWSOM proposal comes hot in the wake of the Trump’s Bombshell plan for Hollywood, which would slap the heavy tariffs on films produced outside the United States. Trump considered foreign production a “threat to national security” for the American filmmaking industry, not only because they draw filmmakers to other markets, but also bring “correspondence and advertising” to the American theaters.
Trump wrote on Sunday night in a social publication of the truth: “Film industry in America dies with a very fast death.” “Other countries offer all types of incentives to attract filmmakers and studios away from the United States. Hollywood, and many other areas within the United States of America, are destroyed. This is the concerted effort by other countries, and therefore, the threat of national security, immediately, immediately, in assembly, immediately, it is manifested in nutrition. That is, and all films coming to our country are produced in foreign lands.
Shortly after Trump announced the plan, a White House spokesman explained that he was still in the development phase, and that no official decisions were taken.
“Although no final decisions are made regarding the tariff of foreign films, the administration explores all options to implement President Trump’s directive to protect national and economic security in our country, making Hollywood great again,” said spokesman Kush Desai.
This did not prevent Hollywood from overwhelming anger and confusion, with a lot of not sure of what should be presented from the mysterious and enchanting Trump suggestion. The stock market reaction was immediately with wide declines in the entertainment sector. Lionsgate Studios decreased by 4.1 %, Warner Bros. decreased. Discovery by 2 %, Netflix decreased by 1.9 % and PAAROUNT decreased 1.6 %.
Trump’s tariff plan will face many legal and practical obstacles. The law that relied on it cannot be used to impose previous definitions, the Law of Economic Forces for International Emergency, to impeding the flow of “information materials”, including films.
