Los Angeles Hollywood signature on January 22, 2024
Mario Tama | Getty Image Znow | Getty Image
President Los Angeles -Donald Trump chose a fight against Hollywood’s best friend.
Canada, known as Hollywood North, is a lively production hub of American movies and television series for decades. In addition to providing attractive tax deductions to state studios, the state has developed a leading labor for industry in front and behind the camera.
Hollywood insider told the CNBC that Trump proposed by Trump for Canadian products could threaten the relationship.
Some are afraid that a trade war with Canada could retaliate in the way US North Nanjin could hurt film production. Others believe that the relationship between Hollywood and Canada is strong enough to withstand Trump collection and is highly profitable.
“Everyone wants to see American tariffs on Canadian products on both sides of the border on both sides of the border on both sides of the border on both sides of the border on Social Media Site X on Friday. Hmm.
On Saturday, Trump announced 25 % of Mexico and Canada’s 25 % tariffs and 10 % of China’s products. The Trudeau immediately pounded retaliation tariffs on American products and said, “As with US tariffs, we will have a wide range.”
Both Canada and Mexico announced on Monday that the country will pause for 30 days after the country agrees for larger border management.
If the tax is resurrected in one month, Trump’s tariffs may put pressure on the production budget, according to the industry’s insider.
However, most studios are source for production locally. For example, it is rare for a set in Los Angeles to bring wood from Canada. Movies and television programs shot in other countries mainly use supplies in those places and ship from the United States. This includes foods used in catering.
In addition, many of the typical line items with a typical production budget are rented. Lighting, cameras, and other production devices come from the studio warehouse, lease during the shooting period, and save production costs to some extent.
Squeeze consumers
Nevertheless, there are increasing concerns that higher tariffs in the entire sector affect movie fans’ wallets, which may threaten box office revenue.
Companies that import products to the United States to the United States are expected to give additional costs to the United States, raising the cost of hundreds of general household goods. The members of the movie industry, who talked to the CNBC, said that they were one of the costs to reduce travel to theaters when customers began to tighten their wallet strings.
Hollywood has just begun to recover after the closing of COVID-19 pandemic production deteriorated by double labor attacks. Even if the studio can now improve the rhythm of theater release, there are concerns that movie fans have no discretionary income to see new movies and buy popcorn.
If you can endure that reality, the whole industry may suffer.
Eventually, industry experts told CNBC that Hollywood would navigate what results from Trump’s tariffs. However, you may have a hard time dealing with the pullback of consumer spending.
Hope is that even if the price rises, a huge hit movie scheduled to be released in 2025 is enough to sell tickets and drive pedestrians.
