Michael Donaldson Pens Realscreen Article Unpacking the Effects of Tariffs on Independent Filmmakers
Michael Donaldson recently authored a piece in Realscreen analyzing President Donald Trump’s recently proposed tariffs on foreign-produced films and the potential impact such legislation could have on the film industry.
In the article entitled “Why tariffs would add insult to injury for indie filmmakers,” Michael expresses concerns over the rashly proposed legislation and the support from the administration’s three “Special Ambassadors to Hollywood” – actors Jon Voight, Sylvester Stallone, and Mel Gibson. Michael continues to express that these actors would likely be unimpacted while independent scripted and documentary films would bear the brunt of the proposed tariffs. “While a major studio may be able to pay for the tariffs, independent film producers scurrying for funding may find the tariffs prohibitive, as they cut into the bottom line,” he explains. He continues to add that these tariffs could create further threats to the freedom of speech of documentary filmmakers.
Despite the harm this legislation could cause to indie filmmakers, Michael explains that there is some truth behind Trump’s statement – domestic film production is continuing to decrease, in part because of a lack of federal incentives to offset production costs offered in other countries.
However, rather than his suggested tariffs, Michael writes that Trump should re-examine the Domestic Production Activities Deduction (DPAD) program under Section 199 of the Internal Revenue Code, which reimbursed certain films for domestic contributions by allowing up to 9% in tax reductions, thereby encouraging domestic film production.
“We are in choppy waters, and the only way to level them out is to reduce the cost to produce, which will encourage creators to take chances and tell more stories,” he concludes. “Tariffs will likely do more harm than good, and, assuredly, silence the voices of many independent filmmakers.”