On Sunday, May 4th, President Trump posted on Truth Social about a potential 100% tariff on movies produced in “foreign lands.” He noted that the American film industry was in rapid decline and wanted to have “movies made in America again.” Local filmmakers said a shockwave was sent through the industry from this news.

There have been voices in support of the tariffs, agreeing that the American film industry is currently in a huge crisis. While others are against the tariffs and seek investment in creators and state incentives. Nathan Deming has been in Los Angeles for 10 years and is now a part of Action Wisconsin, a statewide coalition of filmmakers, crew members, craftspeople and technicians, city governments, hotels, restaurants, and caterers. He reported that most of the time, not many movies are being filmed in Hollwood.

American Film Industry Status

“Rob Lowe has said it’s cheaper to fly 400 people for his reality show to Ireland to film an American reality show in Ireland than it is to just shoot and produce it in Los Angeles,” Nathan said. The reason it being cheaper connected to rising costs in Los Angeles and more attractive Tax incentives being offered in other countries. He said that most studios in LA he had seen were being used for YouTube shows or reality TV but found a large quantity empty.

Countries and states know that film production is a cash windfall when it comes to filming at a location. As a private investor or a studio, they are injecting possibly millions of dollars into the economy through carpenters, restaurants, hotels, and production expenses. But with an example of a 45% tax incentive in London, many productions are filming outside the U.S. Nathan said, “What’s happening now that’s concerning is that movies set in Los Angeles, set in Chicago, set in New York, are being filmed in Vancouver, Toronto, Dublin.”

The film industry is young, with only been around for roughly 130 years, but it has still seen many changes throughout its lifetime. More recent changes have been more access to crews, evolving technology, and long-distance teams. All along, phones have helped make anyone able to make their films. The United States is in a unique position as the media produced from its film industry roughly represents 70% of what the world watches. According to The Numbers, in 2024, 1,151 movies were produced by the United States with a $18,010,925,224 Worldwide Box office.

“American film workers, along with all the great writers and directors we’ve produced, built this multi-billion-dollar industry with a huge legacy,” Nathan added. But with these resources, many upcoming filmmakers see a new kind of growth happening within the industry.

Change in the American Film Industry

Bodhi Werner has been making films in Minnesota for the last 10 years and sees the advancements in technology and the growth of the industry.

“Some people say that the film industry in America is dying, and I don’t agree. It’s diversifying,” Bodhi said. “It’s adapting. And it’s decentralizing. We are seeing smaller regional industries growing. And that’s what’s happening here in Duluth because of strategic investments in policies that help Americans.”

Bodhi encourages the route of tax incentives rather than tariffs on the industry. He reported seeing direct impacts of equipment that he acquired, now being out of his price range as an independent filmmaker with recent tariffs. So, he pushes for festivals and incentives at the state level. The Midwest film industry has seen steady growth with the help of tax incentives from organizations like the Upper Midwest Film Office.

“And tariffs didn’t play any part in that growth,” Bodhi added. “The growth factors come from policies like incentives, state and local grant funds, workforce training, and film festivals and other community events that bring together independent filmmakers.” Bodhi added that some of his favorite films and biggest inspirations were made in foreign countries. He attributed Hayao Miyazaki, a Japanese filmmaker with Studio Ghibli, a huge inspiration for his work and had a big impact on his life.

Suggestions and Insights

Both filmmakers gave their suggestions and insights on ways the problems in the American Film Industry could be addressed. Nathan spoke on the questions addressing the problems raised. People he spoke to looked for a future that’s best for everybody. Considering a possible short-term approach of a focus on regional cinema. Saying America will have to rethink itself as a regional brand to maintain its high media production brand.

“I think there’s an opportunity for markets within that to also embrace a regional identity like the Midwest, Minnesota, Wisconsin, Illinois,” Nathan added. “Through the use of incentives, which we will only benefit if a good version of these tariffs goes through, which is that suddenly they’re not going to be able to film in the UK, they’re not going to be able to film in Ireland. Where are they going to go? Well, they’ve got 50 options.”

Bodhi also spoke on investments in organizations like the Upper Midwest Film Office, similarly to how Action Wisconsin is trying to set incentives for filmmakers in Wisconsin. As he encouraged, “seek out your local film festivals, go attend them, and let the filmmakers know that they matter to you.”

With the proposal still on the table, President Trump softened his stance later in the week. He says he plans to “Meet with the Industry” before his proposal. Outcry and voices of the industry that were against the tariff and wanted to make sure that the new proposal accurately reflects the needs of the industry.