Rep. Judy Chu Condemns Trump’s Dangerous 100% Film Tariff Threat, Advocates for Incentives
PASADENA, CA – Rep Judy Chu (CA-28), Founder and Co-Chair of the bipartisan Creative Rights Caucus, issued a statement today condemning President Trump’s most recent threat to implement a 100% tariff on films made outside of the United States, which would have a devastating impact on the industry.
“American movies are some of our country's greatest exports, but that is all at risk if President Trump follows through on this dangerously misguided threat,” said Rep. Chu. “Tariffs will not bring film production back to the United States. Instead, they will provoke retaliation from around the world, devastate our film industry here at home, and jeopardize millions of American jobs.”
“President Trump correctly identified the problem of film and TV production moving abroad. But tariffs are not a solution. Instead, we need incentives that keep production here, support American workers, and grow our creative economy. And without congressional action, the Section 181 tax deduction, which is the only federal incentive for domestic film production, will expire after December 31st of this year. That is why I introduced the bipartisan, bicameral CREATE Act to expand and extend Section 181, and strengthen federal support for U.S.-made films, television, theater, and sound recordings by allowing 100% deduction of production costs in the same year those costs are paid or incurred. And with Section 181 set to expire in just a few months, it is critical that Congress act now to not only extend this deduction, but strengthen it to ensure that the United States continues to invest in the incredible talent that exists in my district in Southern California and across the country," Rep. Chu continued.
“Our movies showcase the best of American creativity to the world and support millions of jobs nationwide. Putting them at risk with reckless tariffs is unacceptable,” Rep. Chu concluded.
As the global hub of film and television, Los Angeles County is home to world-renowned studios such as Disney, Paramount, Universal, and Warner Bros. The industry anchors the local economy, supporting over 325,000 jobs, paying $38.5 billion in wages, and driving $117.2 billion in overall economic impact.