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"We won't be able to make movies for the same budgets, actors won't get paid the same fees, and the list goes on," said one film professional. "Simply, it would destroy the independent sector."
U.S. President Donald Trump's announcement via social media Sunday evening that he would "begin the process of instituting a 100% Tariff" on films produced in foreign countries was met with confusion and shock in the U.S. entertainment industry and abroad, with filmmakers cautioning that such extreme levies would render many productions impossible and do nothing to save what the president called the "dying" movie industry.
On his social media platform, Truth Social, Trump took issue with "incentives" that have pushed filmmakers to shoot projects outside of the U.S., not only saying that the industry centered in Hollywood is "being devastated" but also suggesting that simply traveling to other countries to produce films leads to foreign "propaganda" being embedded in the final products.
"This is a concerted effort by other Nations and, therefore, a National Security threat," said Trump. "It is, in addition to everything else, messaging and propaganda!"
Commerce Secretary Howard Lutnick suggested the administration is moving to implement the president's plan, writing, "We're on it" in his own social media post.
While the vast majority of U.S. films are already produced mainly in the U.S.—providing jobs to actors, editors, and other production staff—many major studios including streaming giants Amazon and Netflix have brought their production shoots to cities like Toronto and Dublin, where local leaders have offered large tax breaks.
California Gov. Gavin Newsom, a Democrat, is currently addressing the effects those foreign tax incentives have had on working film professionals in Southern California—including makeup artists, camera operators, electricians, and other middle-class workers—by pushing for a tax credit for studios to film locally. The state Legislature is currently considering that proposal.
"Putting a tariff on movies shot outside the U.S. will increase the cost of shooting and the studios will lobby the exhibitors to raise ticket prices and then the audience will skip the theater and then... well you see where this is going."
But by "instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands," film industry veterans said Trump would not succeed in bringing production jobs back to the United States—but would rather make all but the biggest budget films impossible to produce.
"This is NOT the effect this is going to have," one industry professional toldDeadline. "It will make low- and mid-level productions completely unproducable, hence destroying many jobs from producer assistants to writers to post-production. Further, it will lessen the amount of big budget content created because the studios won't be able to make as much because the cost of production will be more."
An official at a top U.S. film company that produces movies both domestically and internationally told Deadline that international film distributors will be less likely to buy U.S. films under Trump's new tariff plan.
"It affects domestic distribution deals but it also impacts equity players who have money in movies because their films will suddenly be worth less money," they said. "We won't be able to make movies for the same budgets, actors won't get paid the same fees, and the list goes on. Simply, it would destroy the independent sector."
Exactly how the proposed policy would be implemented was unclear from Trump's social media post, but U.K.-based producer told Deadline that "leading independent distributors would all be out of business if it's them" who have to pay the tariffs.
A source close to the White House toldPolitico that the tariff policy originated with actor Jon Voight, a strong supporter of Trump who—along with Mel Gibson and Sylvester Stallone—has been named one of Trump's "special ambassadors" to Hollywood.
Deadlinereported last week that Voight was meeting with studios and union representatives in Hollywood to discuss a plan to revive the film industry, with "a federal tax incentive" expected to be a main component.
Voight's fellow ambassador, Gibson, is one Hollywood player who could be directly impacted by Trump's proposed tariffs; his film, a sequel to The Passion of the Christ, is scheduled to begin filming in Italy this summer.
"Putting a tariff on movies shot outside the U.S. will increase the cost of shooting and the studios will lobby the exhibitors to raise ticket prices and then the audience will skip the theater and then... well you see where this is going," wrote producer Randy Greenberg in a post on LinkedIn after Trump announced his plan.
The Washington Post reported that Trump could rely on a provision of a 1962 trade law that he has used in the past to impose tariffs on goods; the law gives the Commerce Department 270 days to complete an investigation into alleged national security threats created by certain imports.
"Other nations have stolen our movie industry," Trump told reporters on Sunday. "If they're not willing to make a movie inside the United States, we should have a tariff on movies that come in."
At The Guardian, film editor Andrew Pulver wrote that Trump's plan appears aimed at destroying "the international film industry":
The effect of any tariff is likely to be dramatic. Recent figures from the British Film Institute (BFI) show that in 2024 £4.8 billion ($6.37 billion) of production spend on film and high-end TV in the U.K. came from international sources, 86% of the total spent on film and TV made in Britain. In Australia, the film industry stands to lose up to AUS $767 million. A program of studio building in the U.K., designed to increase capacity and therefore revenue, is likely to feel the chill almost immediately. And the effect on the domestic industry in the U.S. is forecast to be adverse, as production costs rise without the injection of overseas tax incentives, with mid-level projects potentially wiped out.
Despite Trump's claim that the industry is "dying," according to the Motion Picture Association's latest economic impact report, the U.S. film industry had a $15.3 billion trade surplus in 2023 and $22.6 billion in exports.
An executive at a U.S. distribution company expressed hope to Deadline that Trump's threat would encourage "desperately needed increases in U.S. state tax incentives being implemented ASAP."
"Can't see his target here," they said, "other than confusion and distraction."
"Now Waltz can share sensitive U.S. military secrets on Signal chats with not just journalists—but all 193 countries of the world."
Political observers had assumed Thursday that White House officials deemed National Security Adviser Michael Waltz unqualified for a top Trump administration position after he was fired following the "Signalgate" scandal.
But in what one analyst called a "surprise twist," Waltz's dismissal actually freed him up for another high-level role: that of United Nations ambassador.
Soon after sources leaked the news that Waltz had been dismissed, President Donald Trump announced on his Truth Social platform that he was nominating the national security adviser to be his ambassador.
Waltz was removed from the national security position in the wake of the scandal that's also embroiled Defense Secretary Pete Hegseth and other administration officials.
He organized a group chat on the commercial messaging app Signal in which officials discussed plans to bomb Yemen in March and inadvertently added the journalist Jeffrey Goldberg to the discussion.
It was later reported that Waltz and his staff had created at least 20 group chats using the app to discuss sensitive foreign policy issues, prompting calls for his resignation.
"Now Waltz can share sensitive U.S. military secrets on Signal chats with not just journalists—but all 193 countries of the world," said lawyer and commentator Tristan Snell after the new nomination was announced.
Journalist Jamie Dupree noted that when Waltz meets with senators for his confirmation hearings, he is likely to face "all sorts of questions about the Signalgate episode" from Democrats.
In his announcement, Trump said Waltz "has worked hard to put our nation's interests first" and expressed confidence that he will do the same as U.N. ambassador. He named Secretary of State Marco Rubio as Waltz's temporary replacement as national security adviser.
Trump previously named Rep. Elise Stefanik (R-N.Y.) to be his U.N. ambassador but withdrew her nomination in March, citing the Republicans' narrow majority in the House.
"A reminder that various administration officials lied under oath in the Senate yesterday," said one former Democratic congressman, "which is a crime punishable by imprisonment."
In response to U.S. Secretary of Defense Pete Hegseth claiming on live television earlier this week that "nobody was texting war plans," The Atlantic magazine on Wednesday morning published the "war plans" that were, in fact, shared on the private sector messaging app Signal by top members of President Donald Trump's national security team, including Hegseth and national security advisor Mike Waltz.
It was The Atlantic's Jeffrey Goldberg who on Monday published a bombshell report about how he was, seemingly "inadvertently," added to the Signal group chat by Waltz, a conversation that, in addition to Hegseth, also included director of national security Tulsi Gabbard, CIA director John Ratcliffe, White House deputy chief of staff Stephen Miller, Vice President JD Vance, and others.
In the new piece published, Goldberg said that public denials by these top officials since the original reporting presented the magazine "with a dilemma" about what to do with information the editorial team had initially withheld, citing national security concerns.
"These are strike plans. There must be a broad investigation of how compromised our national security is because of their shocking incompetence." — Rep. Veronica Escobar (D-Texas)
Though its editorial decision to withhold information was criticized by some journalists who believe the public has a right to know such details—including reporter Ken Klippenstein who accused the magazine of falling prey to "media paternalism" by not initally releasing the full contents of the chat—Goldberg explained The Atlantic's decision this way:
we withheld specific information related to weapons and to the timing of attacks that we found in certain texts. As a general rule, we do not publish information about military operations if that information could possibly jeopardize the lives of U.S. personnel. That is why we chose to characterize the nature of the information being shared, not specific details about the attacks.
However—citing Hegseth's on-air denial Monday, a statement by Trump that nothing in the chat was "classified," as well as testimony before a committee in the U.S. Senate on Tuesday by Gabbard and Ratcliffe, both of whom said under oath that classified information was not shared—Goldberg said the magazine's assessment changed.
"We believe," writes Goldberg in the latest piece, "that people should see the texts in order to reach their own conclusions. There is a clear public interest in disclosing the sort of information that Trump advisers included in nonsecure communications channels, especially because senior administration figures are attempting to downplay the significance of the messages that were shared."
Given that the nation's highest-level national security officials, up to and including the President of the United States, have said the material is not classified, the magazine acknowledged—and since the attack plans were for an operation already carried out against Houthis targets in Yemen—it would be strange if The Atlantic still felt not at liberty to publish them.
After reaching out to various agencies in advance of its decision to publish, Goldberg reports that the White House still objected to the release of the exchange, with press secretary Karoline Leavitt claiming that even though "there was no classified information transmitted in the group chat," the administration holds that what was said on the unsecured, third-party communication app was "intended to be a an [sic] internal and private deliberation amongst high-level senior staff and sensitive information was discussed."
What follows are screenshots of the detailed war plans discussed on the Signal group chat by Trump's top officials, as reported by The Atlantic:
After this portion, Goldberg notes: "If this text had been received by someone hostile to American interests—or someone merely indiscreet, and with access to social media—the Houthis would have had time to prepare for what was meant to be a surprise attack on their strongholds. The consequences for American pilots could have been catastrophic."
More details:
And then these paragraphs:
While The Atlantic's new reporting on Wednesday sits behind a paywall, reaction to it was immediate and widespread.
"Hegseth repeatedly lied to the American people and should be fired—along with all the others in the chat," said Rep. Veronica Escobar (D-Texas) in response to Goldberg's latest revelations. "These are strike plans. There must be a broad investigation of how compromised our national security is because of their shocking incompetence."
On Wednesday, two Democratic House members—Rep. Gerald E. Connolly, Ranking Member of the Committee on Oversight and Government Reform, and Rep. Maxwell Alejandro Frost, Ranking Member of the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs—launched a congressional probe into whether or not war plans were discussed in the group chat and called on every official involved to preserve all related documents and communications.
"This incident raises grave concerns about the misuse of unsecured communication platforms for classified discussions and the potential that American military and intelligence professionals may have been compromised by the reckless dissemination of such classified material,” Connolly and Frost wrote in a letter addressed to all the officials involved.
Given their testimony before the Senate on Tuesday, Ratcliffe and Gabbard may come under specific scrutiny by members of that committee and other lawmakers.
"A reminder that various administration officials lied under oath in the Senate yesterday," said former Democratic congressman Mondaire Jones, "which is a crime punishable by imprisonment."