Trump tariffs may threaten the Hollywood manufacturing, the restoration of the field workplace
The Hollywood sign in Los Angeles on January 22, 2024
Mario Tama | Getty Images News | Getty pictures
Los Angeles – President Donald Trump has just chosen a fight with Hollywood's best friend.
Known Canada as Hollywood North, has been a lively production center for American film and television series for decades. The country not only offers a tempting tax credit for Stateside Studios, but has also developed a first-class workforce of industrial talents in front of and behind the camera.
Trump's import duties for Canadian goods could threaten this relationship, Hollywood Insider told CNBC.
Some fear that an increased trade war with Canada could lead to the northern neighbor of the United States in a way that affects film production, reciprocates and possibly calls on the tax credits they are looking for or the closure of the US studios as a whole. Others believe that the relationship between Hollywood and Canada is strong enough and lucrative enough to withstand Trump's taxes.
“Nobody – on both sides of the border – wants to see American tariffs for Canadian goods,” wrote the Canadian Prime Minister Justin Trudeau on Friday at the social media website X and promised a “powerful and immediate reaction”.
On Saturday, Trump announced 25% tariffs for most goods from Mexico and Canada as well as a 10% service for goods from China. Trudeau immediately hit the American goods and said: “Like the American tariffs, our answer will be far -reaching.”
Trump's tariffs could put pressure on the production budgets, according to industry experts, especially for films and television programs that import certain textiles for costumes or unique building materials such as special glass from outside the USA
However, most studios take materials locally to their productions. It is rare that a set in Los Angeles brings wood from Canada, for example. Films and television programs filmed in other countries will mainly use supplies at these locations or send them from the USA. This includes foods used in catering. This could take place due to tariffs, but the budgets are probably not changed too much.
In addition, many of the values for the typical production budget are rented. Lighting, cameras and other production facilities come from Studio warehouses and are rented for the duration of the shooting, which means that the production costs are insolving to a certain extent from higher taxes.
Press consumers
Nevertheless, the concerns grow that higher tariffs in the industries influence the bridles of the cinema -goers and, in turn, threaten sales of sales.
It is expected that companies that import goods from these affected countries pass on additional costs to consumers and increase the costs for hundreds of common household goods. The members of the film industry, who spoke to CNBC, said they were concerned that when customers start to tighten their wallets, travel to the theater could be among the costs that are reduced.
Hollywood has just started to recover after the shutdowns for the pandemic production of COVID-19 have been tightened by double work blows. Even if studios are able to improve the cadence of theater publications, there is concern that cinema goers do not have the discretion to see new films and buy popcorn.
If this reality fails, the entire industry could suffer.
Ultimately, industry experts CNBC announced that Hollywood would control all the consequences of Trump's tariffs. However, it will probably be more difficult to deal with consumer expenses.
The hope is that blockbuster films, which are in 2025 for publication in 2025, are sufficient to promote ticket sales and pedestrian traffic.
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