Cannes Film Festival Deal Makers Reject Trump’s Tariff Proposal for Hollywood

Hollywood executives at Cannes criticize Trump’s proposed tariffs, fearing they will worsen industry struggles. While some actors support his focus on production shifts overseas, they prefer tax incentives over tariffs. Concerns about investor confidence and the complexities of defining U.S. films in an international context further complicate the issue.

At the Cannes Film Festival, many dealmakers are not warm to Donald Trump’s lofty ambition to rescue Hollywood through hefty tariffs. This sentiment appears to cross party lines, as even some of his supporters are voicing concern. While not all are overtly political, a significant number express skepticism regarding his proposal for 100-percent tariffs on films produced outside the United States, labeling it a potential “massive disaster.” Scott Jones of Artist View Entertainment articulated that such measures would likely worsen the industry’s current struggles, saying, “I don’t see any benefit to what he is trying to do. If anything it could really hurt us.”

In a contradictory stance, actors Jon Voight and Sylvester Stallone, who have been named Trump’s “special ambassadors” to Hollywood, recently voiced their support in a letter. They appreciated Trump for highlighting the issue of U.S. productions moving overseas but advocated for tax incentives rather than tariffs to reverse this trend. This perspective was echoed by a wide range of filmmakers and industry leaders, highlighting the reality that over 80 countries provide compelling production tax incentives, luring projects away from American soil.

Prominently featured at Cannes is Tom Cruise’s much-anticipated film, “Mission: Impossible – The Final Reckoning,” filmed extensively in Britain and South Africa. Reflecting on the global nature of filmmaking today, Louise Lantagne, who heads Quebecreatif, stated that many production teams are compelled to venture to Canada owing to cheaper operational costs and available incentives. She expressed grave concerns about the implications of tariffs, suggesting they would create considerable chaos, though she also acknowledged that for now, Trump’s comments are largely just rhetorical.

Concerns regarding the feasibility of implementing tariffs without legislative changes have been raised by industry professionals like Monique White, sales agent for California Pictures. Many believe Trump is likely to abandon his tariff proposal. However, the specter of such tariffs has already instilled fear among industry stakeholders. One veteran producer, who prefers anonymity and voted for Trump, lamented that the mere suggestion of tariffs has created a significant “catastrophic” impact on investor confidence, particularly among foreign investors reluctant to risk their capital.

The complexities of defining what constitutes a “U.S. film” in today’s international landscape emerged as another pressing issue. Sylvain Bellemare, an Oscar-winning sound editor, shared personal experience to illustrate this complication. His contribution to “Splitsville,” starring Dakota Johnson, involved shooting in Quebec but was financed with American funds. Another project, “Novocaine,” set in San Diego, was filmed mostly in South Africa with post-production in Quebec. Bellemare estimated that American producers can no longer afford the high costs associated with filming in California.

California Governor Gavin Newsom is making efforts to enhance tax breaks for productions by proposing to double the annual budget to $750 million. Yet, many in the industry, including White, contend that this amount is insufficient given the fierce competition for productions from foreign markets keen to lure U.S. filmmakers away. Cannes has become a vivid exhibition of this struggle, with countless nations showcasing attractive fiscal incentives aimed at capturing American movie and television creators.

In summary, the response from Hollywood figures at Cannes toward Trump’s proposed tariffs has been predominantly negative. Many industry professionals are concerned that such a move could exacerbate existing challenges. While some recognized the issue of production migration, the call for tax breaks instead of tariffs has gained significant traction among producers and actors alike. There is a growing consensus that maintaining the status quo, or enhancing financial incentives rather than imposing barriers, is crucial for the survival of the American film industry in a competitive global landscape.

Original Source: www.dailyexpress.com.my