Trump’s Movie-Tariff Buzz: Studio Heads Focus on California Production Incentives Reform

President Trump believes that imposing substantial tariffs on films produced abroad is a strategy to sustain production and secure jobs within the United States.

However, during a panel discussion at the 2025 Milken Institute Global Conference in Beverly Hills, key figures from major Hollywood studios expressed that a critical concern was maintaining film productions in California. They emphasized the need for the state to improve its approach to offering incentives for film and TV projects.

“This is clearly a significant issue,” remarked Ravi Ahuja, President and CEO of Sony Pictures Entertainment. “The problem of productions moving away is, frankly, more about California than the entire U.S. So, even though many productions are leaving the United States, California is suffering even more.”

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Ahuja mentioned that representatives from the industry, including those at Sony Pictures, are actively collaborating with the California government to develop supportive legislation. He pointed out the economic basis of the issue, stating, “If the incentives here are better than elsewhere, studios will choose to film in the States. It’s important to remember that our business operates on relatively tight margins—around 10% for most studios. Therefore, choosing efficient production locations is crucial for us.”

Ahuja also noted that sometimes productions must be located overseas for creative reasons. For instance, Sony’s “The Woman King” was filmed in South Africa due to its historical context involving the Agojie, an all-female warrior group from the 17th to 19th century West African kingdom, and starred Viola Davis.

Casey Bloys, Chairman and CEO of HBO and Max Content, described the situation as a “significant California problem,” noting that shows like “Hacks” are filmed in L.A. He highlighted the difficulties in planning due to the capped and uncertain nature of California’s incentives compared to more reliable incentives in places like Atlanta or Canada.

Mike Hopkins, head of Prime Video and Amazon MGM Studios, echoed the sentiment, preferring to produce in California but acknowledging the benefits of guaranteed incentives. He clarified that these incentives are crucial not for paying high-profile actors but for covering production costs.

Pearlena Igbokwe, Chairman of Television Studios at NBC Entertainment and Peacock Scripted, agreed with fellow panelists, emphasizing that the decision to film abroad is usually driven by the narrative needs rather than preference.

Debora Cahn, creator and writer of “The Diplomat,” praised the unmatched talent pool in L.A. but pointed out the necessity of filming certain scenes, like those requiring castles and palaces, in locations like London.

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Following Trump’s proposal for a 100% tariff on foreign film productions, California Governor Gavin Newsom announced plans on Monday to collaborate with the president to establish a $7.5 billion federal tax incentive to bolster the film industry.

The discussion, titled “Storytelling, Strategy, and Innovation: Shaping the Future of Filmed Entertainment,” was moderated by CNBC correspondent Julia Boorstin.