Chu Slams Trump’s Proposed Film Tariff, Calls for Incentives to Protect Industry Jobs

U.S. Rep. Judy Chu is urging Congress to reject President Donald Trump’s threat to impose a 100% tariff on films made outside of the United States, warning the measure could cripple the domestic film industry and jeopardize millions of American jobs. Instead, the Altadena and Pasadena representative is calling for expanded federal incentives to keep production rooted in the United States.

Chu said the tariff plan, floated by Trump as a way to counter the offshoring of film and television production, would backfire by triggering global retaliation and undermining one of America’s most influential export sectors.

“Tariffs will not bring film production back to the United States,” Chu said. “They will devastate our industry, provoke international backlash, and threaten the livelihoods of millions of American workers.”

Chu acknowledged that Trump correctly identified the problem of production moving abroad but said tariffs are not the solution. She emphasized the need for incentives that support American workers and grow the creative economy, pointing to the looming expiration of Section 181—the only federal tax deduction for domestic film, television, theater and sound recording projects—as a critical moment for congressional action.

“Without congressional action, the Section 181 tax deduction, which is the only federal incentive for domestic film production, will expire after December 31,” Chu said. “That’s 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.”

Los Angeles County, home to major studios including Disney, Paramount, Universal and Warner Bros., anchors the global entertainment industry. The sector supports more than 325,000 jobs, pays $38.5 billion in wages, and drives $117.2 billion in overall economic impact.

“Our movies showcase the best of American creativity to the world and support millions of jobs nationwide,” Chu said. “Putting them at risk with reckless tariffs is unacceptable.”