California Gov. Gavin Newsom filed a lawsuit Wednesday over President Donald Trump’s illegal use of the emergency to impose tariffs “disruptive” on state families, businesses and the economy.
With California becoming the first state to suing tariffs, Newsom and state Attorney General Rob Bonta argued that only Congress has the power to allow federal agencies and the White House to make drastic policy decisions of “a huge economic and political significance.” The governor noted that taxation will have a “major impact” on the world’s fifth-largest economy and its international trading partners.
After imposing a universal 10% tariff on most imports and mutual tariffs in dozens of countries, it suspended mutual tariffs for 90 days and raised China’s retaliatory tariffs to 145%, Trump’s declaration left the sector, including independent film producers.
Heading to Cannes screen I spoke with prominent independent producers and individuals involved in production who liked to talk about the background and who publicly stated that they had little clue about how evolving circumstances would affect business. Continuous Uncertainty declined to comment through its representatives within the Producers Guild of America.
One veteran filmmaker potentially described the situation as “one of the most disruptive scenarios I’ve seen.” They said the lack of clarity from the US administration threatened to exacerbate the pain caused by the rise of streaming, the global pandemic, the Twin Hollywood strike and the slow start to the year when the Los Angeles wildfires affected the US package of Berlin’s EFM.
After the US administration negotiated trade agreements with individual countries, no one expressed confidence in betting how tariffs would affect filmmaking.
Two sources speculated that US productions filming abroad might theoretically avoid taxing importing goods and materials into the US for production. Another producer was unsure whether the tariffs would have a “significant effect” on the costs of products on US-based filming. The other two viewed that currency fluctuations could motivate American producers to maintain production in the US.
Not to mention the sale of US Treasury bonds and the sale of plunging tech stocks, an excess of US dollars in the US dollar could increase long-term faith losses in US assets. “What we can expect is that it helps with advance sales,” one producer said. Conversely, US buyers dealing with international sellers could end up paying more.
High cost and competitive international production incentives in the US have attacked local production sectors, exacerbating the darkness.
For decades, runaway works have fled to Canada. Atlanta, Georgia has seen a fair amount of traditional businesses relocating to places like the UK. aVengers: Doomsday. Summer release Fantastic Four: The First Step Filmed last year at Pinewood Studios, the fourth Tom Holland Spider-Man is scheduled to be filmed there later this year.
In a continuing bid in favour of in-state production, Governor Newsom proposed more than twice the incentive allocation for California’s annual film and television, but California lawmakers are discussing an increase in tax credits from 20% or 25% to 35% in some cases. The source wants to see suggestions to qualify for exceeding line costs, which is a very attractive element in places like the UK and Italy.
Production in the Greater Los Angeles region is declining. Filmla this week reported that overall production fell 22.4% in the first quarter of 2025, with a 28.9% dropping from 451 filming days in the January-March period. In January, the film said 2024 was the second most productive year it didn’t collaborate with in 2020.
It is yet to be seen how the Trump administration’s tariffs will affect the independent sector. “It’s going to have an impact,” one producer said. “It’s for the glove, what that is.”
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