US President Donald Trump announced on Star Wars Day a 100% tariff on movies made outside the country:
If you’re new to this blog, you might not know that around 10 years ago, I hired a Washington, DC-based law firm specializing in international trade to pursue tariffs on movies. The goal was to combat foreign film subsidies that had severely damaged the U.S. VFX industry. Unfortunately, I had to end the effort because I couldn’t raise the $1 million needed to move the case forward. In the end around 30,000 post production jobs have been lost in the US.
“Vancouver is over“
A tariff on movies would shut down the film subsidy game overnight and bring immediate relief—and if you doubt that, just look at the emails between the MPAA and the studios. In 2014, a year after my push for tariffs ended, North Korea allegedly hacked Sony Pictures and leaked internal emails. Among them were threads expressing concern over my efforts on subsidies, even admitting, “The VFX guys have been smart, frankly, about turning this around on us.” Despite decades of subsidies that paid almost 60% of salaries in British Columbia the immediate reaction from one entertainment exec about the tariffs is that “Vancouver is over”.
Now, I don’t have a stake in this issue. I left the VFX industry over 10 years ago for other opportunities, and I’m not a Trump supporter—I’ve never voted for him, but he might be right about this. If he implements a tariff, it could work, and I can see film workers considering voting Republican if they see a real change instead of the Democrats just pushing for more subsidies. My concern is that U.S. studios and the MPAA might trick Trump with a flashy but empty deal that only makes it seem like he revived the U.S. film industry.
Actor Jon Voight Learns About VFX Soldier
I’m not totally surprised by Trumps movie tariff announcement. Back in January, Trump appointed Jon Voight, Mel Gibson, and Sylvester Stallone to a task force aimed at reviving U.S. filmmaking. At first, I thought it was a joke—until a few weeks ago, during the height of the Trump Trade War, a friend told me he’d met Jon Voight and brought up my efforts to push for a tariff to counter foreign film subsidies that have gutted the U.S. VFX industry. Apparently, it was the first time Voight had heard about the issue, and he was so intrigued that he went back to his car to grab a notebook and write down the details of my blog. Did that meeting lead to the Trump tariffs on the movie business? I don’t know but over the last 10 years I was the only one who legitimately tried to push for that with an actual law firm.
How would a tariff on movies work?
Since the announcement by Trump there’s been a lot of confusion on how a tariff on movies would work and people are overcomplicating it. I helped crowdsource funding for a feasibility study on the issue that was written by Picard Kentz & Rowe. They are experts in this space and their work led to a lot of news coverage on this issue. You can view the 2013 study here:
http://tinyurl.com/VFXSubsidiesStudy
In the study the law firm goes over ways a digital good like a film can have a tariff applied. For example enforcement could rely on retrospective annual administrative reviews where Commerce assesses actual subsidy amounts for specific producers/exporters and issues duty assessments accordingly. Another example is Commerce and Customs could create an entry-like requirement for digital imports to improve enforceability.
2014 VFX Soldier Testifies on Movie Tariffs
Some will argue that California should simply try to compete by offering its own subsidies. That’s exactly what was attempted a decade ago—and it failed. I testified at the time that the funding wouldn’t be sufficient, and predicted the studios would pressure other countries to increase their subsidies, forcing California to keep upping the ante. (Update: and just like that Gov Newsom wants an $8 billion film subsidy!)Because of ongoing inaction from California leadership—including politicians, unions, and trade organizations—ADAPT has reformed and is now actively engaging with legislators and key agencies in the current administration to bring attention to this issue.
Soldier On.

Posted by VFX Soldier 



