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The Looming Tariff Threat: What it (May) Mean, and If It’s Even Possible

Is a “tariff” on non-Hollywood and non-local productions really the way forward to a healthier domestic film and TV industry? While in the current climate of on-and-off announcements, it’s (probably) unlikely we’ll ever see President Trump’s threatened tariffs on non-local content come to life, at least not as originally portrayed, it’s worth looking a little deeper at what the recently proposed tariffs could mean for the industry after last week’s surprising announcement. Brandon Blake, entertainment attorney Los Angeles at Blake & Wang P.A., has some further insight to share.

Brandon Blake

Movies Made in America, Again

As with most of the announcements made around “Liberation Day”, the suggestion last week that non-domestic movies would be subject to a rather steep 100% tariff came as a surprise. Then, again, as many of the tariff-based trade negotiation tactics we’ve seen so far, was almost immediately rolled backwards— for now. What will come in the future is less certain.

While it is always positive to see the government take an interest in the industry and its needs, it’s debatable if yet another clumsy and difficult to enact in practice tariff is the way ahead. Especially given that movies and entertainment productions aren’t, strictly speaking, the “products” to which tariffs traditionally apply, usually falling in the “services” category that most of the US’s key exports do. Typically, this is seen as a sign of a mature and healthy economy.

While claims that foreign-made movies are a “National Security threat” may be a step too far, let’s be honest— the new administration is partly right. The decline in local shoot days, both in LA and throughout the country, have not been missed. Nor have the knock-on effects on the job market. Whether you also see that as other nations “stealing” the domestic movie industry, or simply the inevitable result of globalization and more competitiveness from offshore location shooting destinations when not all US destinations have kept up, however, is a different matter.

Would it Work?

The real question, however, is whether tariffs at any level (we’re unlikely to see 100% in the final reworking of this idea, if it even rises again) can even be applied to movies, as a non-physical product. Not to mention whether this tariff, if even enactable, would make a meaningful impact on the downturn in the local entertainment industry-little suggests it would become more than another “tax” to weather.

Currently, we have no idea when, or even if, the idea of foreign film tariffs will rear their head again. On the legalities front, however, it’s pretty clear. Tariffs are only applied to goods, not services. Which calls the legal enforceability for a potential tariff into question without some restructuring of how the whole tariff system is applied.

That aside, however, it’s also a lot easier to promise than provide, given the many (many) questions raised, from what (and when) it would apply to, through how to handle it over streaming, if we’re talking just filming location or also financing, who would handle enforcement, and more. Opening up the idea of “tariffs” for services may not be a net positive for the US and its mature markets over all industries, either.

In this lawyer’s opinion, it’s a positive sign of government attention to an important issue for the industry. We’d likely, however,  see higher net positive results from instead focusing on efforts to reinvent and re-establish the domestic industry as an appealing one, through lowering the costs of doing business in the US, improving tax incentives, streamlining union regulations, and fostering local growth, rather than trying to tax our way out of a crisis caused by lack of evolution to changing entertainment markets.

Tariffs for films makes for an interesting thought exercise, but an impractical model in reality— and there’s little clarity on how those generated funds would make their way back into the industry that needs them, either. Focusing on re-establishing the global foothold of the domestic entertainment industry seems like a far more productive way to address this issue, even if not quite as “soundbyte-worthy” as a tariff announcement and lofty promises may be.

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Sundance Announces its New Host City and Says Goodbye to Park City

Since it was first announced that the Sundance Festival was looking for a new home, speculation about where the festival will land has been strong. While we were initially expecting the announcement of the new host venue to follow the 2026 edition of the festival, they have now announced their new home. The 2026 festival itself will stay in its current Park City home. To fill in all the details, we have Brandon Blake, the usa entertainment lawyer at Blake & Wang P.A.

Brandon Blake

Best of Three

Boulder City, Colorado, beat out the other two finalists (Salt Lake City, close to its current venue, and Cincinnati, Ohio) to take the crown. Poetically, the Sundance Institute stated that it selected Boulder for its “mountain views, its vibrant arts community, its proximity to a major international airport in Denver, and its walkability and accessibility.” According to the plans that've been announced so far, most of the festival will take place in downtown Boulder, but it will also center some events around its pedestrian-only Pearl Street Mall.

Boulder, which is typically seen as a trendy and eclectic college town, fits the festival's profile well. With strong technology and artistic communities, it also has the “tourist appeal” and general vibrancy that match the Sundance “brand.” In fact, it’s somewhat reminiscent of Park City before Sundance made it its home.

A New Face of Sundance

It’s worth remembering that Park City was once a walkable and artsy town and that much of the expanded hustle and bustle has been brought in by Sundance’s lengthy tenure there. So, while it’s understandable that Sundance sees that as a positive, it’s also a little cheeky.

Of far more importance, however, is the fact that Park City has been losing many of the multiplexes Sundance relies on to host its screenings, needing them to spend major dollars on temporary venues that would have been better used for the festival itself. The Sundance Institute has gone to great lengths to reassure both us and the potential host cities that the move is a logistical one, not a financial or political one.

When Sundance first announced it was looking to relocate back in April 2024, well over 100 cities entered the running. Sixty-seven cities initially made the cut, with 13 progressing and a final 6 “semi-finalists” selected. Of those, we saw the final three released earlier this year.

However, Sundance was using 7 key areas (financial sustainability, inclusion and accessibility, transportation, hospitality, ethos, host partner support, and event readiness) to select their next home.

 It’s also clear that they are hoping to bring in new, younger festival attendees, which doubtless makes Boulder’s college town vibes appealing. Add to that the centralized convenience of Denver International Airport and the notable film department at the University of Colorado, and the selection makes sense. Community is almost built-in.

The 2027 iteration of the Sundance Film Festival will head to its new home in Boulder, with 2026 being Park City’s last as a host city. It will be exciting to see how the new host city revitalizes and reshapes the Sundance experience in the coming years.

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Thinking Beyond Tax Credits in the Location Battle

A lot has changed in the industry post-COVID and with the dawn of the streaming era. One of the most unpredicted, however, has been the shift away from classic on-location areas to explore the boom in tax credits and other incentives across a wealth of compelling destinations, both global and domestic. With such fierce competition, it takes thinking beyond just tax credits to lure producers. Our industry expert, Blake & Wang P.A. entertainment lawyer Brandon Blake, offers his thoughts.

Brandon Blake

The Crew and Infrastructure Conundrum

In a world where there are juicy tax credits to leverage on offer in a variety of locations, those tax credits are a great start but may not be all that’s needed to position a destination at the top of the list. Especially as international destinations, which may also have weaker currencies that make dollar spending go further, enter the playing field. In fact, US production over all states is down about 26% on 2021 stats. While some of that is due to the overall market downturn, the rest is not.

For indie producers, especially, they need a low cost of doing business and available crews to pair with that rebate. Locations are now competing on a global scale. And crews and soundstage infrastructure, like productions, move where the work is. Nevada is currently contemplating offering a tax incentive for developing film infrastructure in the area, and it will be interesting to see if that comes to fruition and how well it plays out. Sony and Warner Bros. Discovery are reportedly interested in this dangling carrot already.

Axing the Red Tape

For smaller productions, which may be, well, small within themselves but make up the bulk of on-location shooting work, timelines, budgets, and schedules are tight. They can’t always wait to hear if they’ve been approved over months, which is a key flaw with California’s current tax credit system. They also don’t always have the scope and support to navigate the murky waters of red tape, trying to determine if funding is available and the exact intricate process needed to bring it to fruition.

Uniform, simple, and predictable administrative processes are of the essence. So is treating all productions, regardless of size and “clout”, the same. Take, for example, states like Kentucky and Oklahoma, where the rebate system removes the need to sell credits back via a broker. In fact, simply streamlining permitting and centralizing the process can be enough to make a destination appealing for an indie shoot.

Some argue that a federal-level office to control and streamline this could be the way forward. After all, in many international destinations, the ability to access a “one-stop shop” for all their needs is a major drawcard, as we see in Bulgaria. Focusing on a similar central source domestically could be a valuable tool in the US location shoot toolbox, but it will be a tough sell, given how much local governance works.

In short, it takes more than a great tax credit to make a great destination. If US states want to stem the tide of international locations luring away dollars, it is essential to think beyond the rebate, ensure the infrastructure and workers needed have reason to call the state home, and reduce the significant red tape involved in accessing these locations. Only then will local destinations truly be on a level playing field with their international counterparts.

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Veteran’s Day Goes to Niche Titles: Here’s Why

With Veteran’s Day now receding behind us, the box office has another lesson to deliver about why indie movies matter to its bottom line. While Venom: The Last Dance unsurprisingly took the top spot, a considerable portion of the top 20 represented indie and niche movies, often with performances better than expected for their category. Our industry insider, review entertainment attorney Brandon Blake from Blake & Wang P.A., shares the good news.

Brandon Blake

Modest Budgets Win

Venom: The Last Dance may have taken the weekend’s No. 1 spot, but with the slates over Veteran’s Day weekend, that’s unsurprising. Nor was it a particularly compelling gross, at $16.2M. However, the movie has taken almost $400m globally and has the potential to match the $507M of its precursor, so it is still on a strong trajectory.

A24’s Heretic and Lionsgate’s The Best Christmas Pageant Ever fought it out for the No 2. spot, both pulling in around $11M, better than projected and outpacing their modest budgets. Nor were they alone in these performances. This was a remarkably eclectic Top 20.

Typically, studios push blockbuster fare for Veteran’s Day weekend due to the four-day holiday. This year, however, the elections being so soon before Veteran’s Day, coupled with a general reduction in film output still from last year’s strikes, meant that many larger releases were intentionally delayed. The moderate and lower budget film tiers benefited greatly. The Best Christmas Pageant Ever has some potential to become a sleeper hit, especially with some holiday theming and strong word of mouth to play with.

The Role of Inexpensive Originals

While many are pinning their hopes on the upcoming releases of Moana 2, Gladiator 2, Red One, and Wicked to keep the box office pumping strongly into the new year, this weekend’s slate showcases the critical role of inexpensive original films in keeping both box office attendance and theatergoer interest high.

Only five films in the Top 20 grossing films this weekend could be classified as medium to high budget. Meanwhile, specialty films like Conclave, Anora, and We Live in Time have thrived, with impressive runs for their class. Terrifier 3 continues to perform amazingly, while Elevation and Overlord: The Lost Kingdom turned in respectable performances.

The weekend even saw strong performances from three Indian releases, a Taiwanese production, and the British animation Hitpig. In short, there was something for any taste to enjoy. And therein lies the real magic.

This weekend proves what industry analysts have long argued — a healthy box office needs diversity. While tentpole releases remain crucial revenue drivers, mid-budget and indie films maintain steady attendance between blockbusters and capture audiences seeking more varied content. They also serve as testing grounds for emerging talent and fresh storytelling approaches.

As the industry continues to recover from recent disruptions, this weekend's success of smaller productions demonstrates that theatrical releases remain viable across all budget levels. It suggests a sustainable future where big-budget spectacles and modest productions can coexist profitably, ultimately creating a more resilient and dynamic film industry.

[sirvabeth]

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