Hollywood is struggling, but some fear Trump’s foreign film tariffs might do more harm than good
At Sony Production studios in Culver City, an area of Los Angeles steeped in the movie business, a steady stream of cars and lorries comes and goes through the security gate.
It occupies the MGM lot which dates back to 1924. Gone With the Wind, The Wizard of Oz and Citizen Kane were shot here and, more recently, Interstellar and The Dark Knight Rises. But this is no longer the beating heart of movie making.
In Tinsel Town the bright lights of the film industry have been fading for some time. Production in Hollywood has fallen by 40% in the last decade, sometimes moving to other states like New Mexico, New York and Georgia, but more often outside the US entirely.
A recent survey of film and TV executives indicates that Britain, Australia and Canada are now favoured locations over California when it comes to making movies.
San Andreas, a blockbuster film about a California earthquake, was shot in Australia. In America, a film about an Irish family settling in New York, was shot in Canada.
Although about a California disaster, San Andreas was actually shot in Australia. Pic: Jasin Boland/THA/Shutterstock
Trump’s movie tariff could deal knock-out blow to UK film industry, union says
The exodus of the film industry from Hollywood is mostly owing to economic reasons, with other countries boasting lower labour costs and more expansive tax incentives. But as productions have moved overseas, studios across Los Angeles are frequently empty and those who work behind the scenes are often out of work.
President Trump has approached this problem with a familiar reaction – sweeping tariffs, a 100% tariff on all foreign made films coming into the USA.
‘It’s a different kind of situation than producing cars overseas’
Justine Bateman is a filmmaker and sister of actor Jason Bateman. She is glad Trump is looking for solutions but does not understand how the tariffs will work. “I will say, I’m very glad to hear that President Trump is interested in helping the film business. But part of the problem is we just don’t have very much detail, do we?,” she says.
“He’s made this big announcement, but we don’t have the detail to really mull over. He doesn’t even say whether it’s going to be films that are shown in the cinema or streaming movies, for example.
“Tariffs can be a profitable situation for when we’re just talking about hard goods, but something like a film and, particularly if you’ve got an American film that takes place in the south of France, you want to be in a particular location.
“So it’s a different kind of situation than producing cars overseas and bringing them back here.”
At the Hand Prop Room in Los Angeles, they supply props for TV and film. The warehouse is brimful of virtually any prop you could imagine, from portraits of former presidents, to replica handguns to African artefacts and 18th century teapots. The walls are decorated with posters from some of the productions they’ve supplied, including Babylon, Oppenheimer and Ghostbusters.
Reynaldo Castillo believes the tariffs could be harmful to Hollywood unless properly thought through
‘It needs to be thought through’
In the past five years, the prop shop has been impacted by the COVID pandemic, by both the writers’ and actors’ strikes and the globalisation of the film industry. Business is at an all time low.
“It’s not helping when so many productions are not just leaving the state, but also leaving the country,” says Reynaldo Castillo, the general manager of the Hand Prop Room. “It’s Hollywood, we have the infrastructure that nobody else has and I think maybe to a certain point we took it for granted.
“I think we can all agree that we want more filming to stay in the country to help promote jobs. But you also don’t want to do something to hurt it.
“How does it work? Are there exceptions for X, Y, and Z? What about independent movies that have small budgets that are shot somewhere else that would destroy their ability to make something? It needs to be thought through and make sure it’s implemented the right way.”
It is certainly big – 940 pages long – but on the question of beauty, Congress is divided.
Donald Trump’s “big, beautiful bill” has sparked ugly debate – both for its ambitious scope and for the political manoeuvring that’s gone on around it.
Elon Musk branded it “political suicide” for Republicans and threatened to fund challenges against those who back it in next year’s midterm elections.
But the president hit back, suggesting he would consider cutting Musk’s lucrative government contracts or even deporting him back to South Africa.
The “big, beautiful bill”, or HR 1 to give the proposed legislation its proper title, is Mr Trump’s signature spending and tax policy.
It extends tax cuts he secured in 2017 and bankrolls his second-term agenda in the White House.
File pic: Reuters
Here is a summary of the key points:
• Permanent tax cuts: Extending relief from the 2017 Tax Cuts and Jobs Act
• Small business support: Doubling the small business expensing limit to $2.5m (£1.8m) to help businesses expand and hire staff
• Child tax credit: Expanding the child tax credit and making it permanent, benefiting 40 million families
• Making housing affordable: Expanding the low-income housing tax credit to kickstart construction of affordable homes
• Defence and border security: Allocating $170bn (£123bn) for border security alone, including $46bn (£33bn) for completing the border wall
• Made-in-America incentives: Providing tax breaks and incentives for domestic manufacturing to promote US industry
• Healthcare and social welfare: Implementing restrictions on Medicaid, which provides healthcare for millions of Americans, and reducing funding for certain healthcare and nutrition programmes.
👉 Follow Trump100 on your podcast app 👈
Clash over ‘monster’ debt bill
Musk, Mr Trump’s former ally and the man who established the Department of Government Efficiency (DOGE), claimed the bill “raises the debt ceiling by $5trn, the biggest increase in history.”
“DOGE is the monster that might have to go back and eat Elon,” was President Trump’s response.
The national debt currently stands at $37trn (£27trn) and the Congressional Budget Office (CBO) estimates that the bill could add $2.4trn (£1.7trn) to that over the next decade.
Please use Chrome browser for a more accessible video player
Trump threatens to ‘put DOGE’ on Musk
Bill splits Republican ranks
Republican Senator Thom Tillis voted against the bill and, following criticism from the president, announced he would not seek re-election in North Carolina.
He said he couldn’t support it due to his concerns about the impact cuts to Medicaid would have on people in his state.
Democrats in the Senate forced a full reading of all 940 pages and then a vote-a-rama, a series of marathon voting sessions.
Read more from Sky News:
Elon’s dad on the Musk-Trump bust-up
How Musk’s cost-cutting mission fell flat
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
In the House of Representatives, it passed by a single vote, 215-214. In the Senate, Vice President JD Vance, had to cast the deciding vote to break a tie (50-50).
Legislatively, the progress of the bill has been a case study in the complexities of American law-making.
Strategically, it represents a mammoth effort to consolidate the president’s policy agenda and secure his legacy.
In the long Gaza war, this is a significant moment.
For the people of Gaza, for the Israeli hostages and their families – this could be the moment it ends. But we have been here before, so many times.
The key question – will Hamas accept what Israel has agreed to: a 60-day ceasefire?
At the weekend, a source at the heart of the negotiations told me: “Both Hamas and Israel are refusing to budge from their position – Hamas wants the ceasefire to last until a permanent agreement is reached.
“Israel is opposed to this. At this point, only President Trump can break this deadlock.”
The source added: “Unless Trump pushes, we are in a stalemate.”
Please use Chrome browser for a more accessible video player
Will Trump achieve a Gaza ceasefire?
The problem is that the announcement made now by Donald Trump – which is his social-media-summarised version of whatever Israel has actually agreed to – may just amount to Israel’s already-established position.
We don’t know the details and conditions attached to Israel’s proposals.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Would Israeli troops withdraw from Gaza? Totally? Or partially? How many Palestinian prisoners would they agree to release from Israel’s jails? And why only 60 days? Why not a total ceasefire? What are they asking of Hamas in return?
We just don’t know the answers to any of these questions, except one.
Please use Chrome browser for a more accessible video player
Dozens killed at beachfront cafe in Gaza
We do know why Israel wants a 60-day ceasefire, not a permanent one. It’s all about domestic politics.
If Israeli Prime Minister Benjamin Netanyahu were to agree now to a permanent ceasefire, the extreme right-wingers in his coalition would collapse his government.
Itamar Ben-Gvir and Bezalel Smotrich have both been clear about their desire for the war to continue. They hold the balance of power in Mr Netanyahu’s coalition.
Read more:
British-Israeli soldier killed in Gaza
‘Almost 60 killed in Israeli strikes’
If Mr Netanyahu instead agrees to just 60 days – which domestically he can sell as just a pause – then that may placate the extreme right-wingers for a few weeks until the Israeli parliament, the Knesset, is adjourned for the summer.
It is also no coincidence that the US president has called for Mr Netanyahu’s corruption trial to be scrapped.
Without the prospect of jail, Mr Netanyahu might be more willing to quit the war, safe in the knowledge that focus will not shift immediately to his own political and legal vulnerability.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike