4 (Continued on Page 6) first buyer is willing to pay? If a piece of IP could be equated to a tangible item, like a car, a second-hand sale is not subject to tariffs, only to a sales tax. Therefore, a sale to a second buyer (for a second window) would not be subject to an entry tariff. In this case, a producer of a non-American movie could arrange a first sale for $1 to an agent, and pay $1 in tariffs if the movie is 100 percent foreign. Naturally, the U.S. Customs and Border Protection office that collects import taxes at ports of entry could demand that the importing U.S. film agent pay the tariff at retail price (not wholesale value as is normally the case for imported goods). Commented Mario Niccoló Messina, founder and CEO of the Los Angeles-based Insurgence Entertainment: “It would be absurd to deny that American cinema is in deep crisis. Bold or misguided, this proposal finally puts film at the heart of the political debate. For decades, Hollywood has been America’s stronghold; today, that position is no longer guaranteed. I’m not sure how practical or enforceable a 100 percent tariff on overseas productions would be, but if it passes, we’ll simply adapt by shifting our shoots back onto U.S. soil.” Chevonne O’Shaughnessy, president of ACI | ACI Inspires, explained from Los Angeles: “In one way the tariffs help me as a producer as I’m making all my movies and series in the U.S. However, the tariffs will also hurt me as I sell movies, and the retaliatory response will make it harder to sell to the international market.” Added Chris Philip, executive producer of Sherlock and Daughter and Departure, “Building a substantial U.S. varied tax incentive infrastructure across the counThe idea of the Hollywood tariffs that U.S. President Donald Trump wants to apply to non-Americanmade movies is clear — despite the realization that Hollywood generates a $15 billion a year surplus for the U.S. But implementation will be difficult. The first hurdle is determining what an “American” movie is. This part could be made relatively simple by applying the point system widely used by many countries to qualify for subsidies. The point system could determine the U.S. production level. If the foreign component is 70 percent, the same percentage could be the import tax. Now the question is: How can an IP’s value be determined? The value of a movie depends on what the buyer is willing to pay. So, does that mean that a tariff on a movie could be priced based on what the Hollywood Tariffs: Fuggedaboutit! Pictured above from l. to r.: O’Shaughnessy, Westlake, Messina, Philip. VIDEOAGE June 2025 World VideoAge will meet you at MIP Africa at the Cape Town International Convention Center VideoAge represents the bridge between selling and buying TV content
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