Bulwark Takes: Trump’s Insane New Tariffs on… Movies?
Release Date: May 5, 2025
Hosts: Andrew Egger, Sonny Bunch, and JVL
Introduction: Trump’s Bold Move Against the Foreign Film Industry
In the May 5, 2025 episode of Bulwark Takes, host Andrew Egger delves into a controversial and bewildering policy proposal from former President Donald Trump. The episode, titled "Trump’s Insane New Tariffs on… Movies?", explores Trump's recent declaration of imposing a 100% tariff on all foreign-produced movies entering the United States. This drastic measure, Trump claims, is a response to what he perceives as a national security threat posed by the decline of the American film industry due to international competition.
Analyzing the Proposal: Sonny Bunch’s Steel-Manning Approach
Sonny Bunch takes the lead in dissecting Trump's announcement, endeavoring to steel-man the former president's argument despite its apparent flaws.
Historical Context and Tax Incentives
Bunch explains that the migration of the film industry from Hollywood to other states and countries has largely been driven by tax incentives. “If you’ve ever wondered why, for instance, so many Walter Hill movies in the 1970s and 80s are shot in New Orleans, it’s because there were really good tax incentives in Louisiana” (01:27). This trend continued with states like Georgia becoming major production hubs due to similar incentives.
Questioning the Tariff Mechanism
Bunch critically questions the practicality of a 100% tariff on foreign movies. “They don’t even know what the actual tariffs are. Do you terrorizing, do you?” he asks (03:55). He illustrates the ambiguity surrounding the proposal, pondering whether the tariff would apply to the entire budget of a film, specific tax rebates, or perhaps even ticket sales.
Impact on the Film Industry
Bunch emphasizes the potential chaos such a policy could introduce. “Nobody understands what it means to impose a 100% tariff on something as complex as movie production,” he remarks (05:09). The uncertainty could deter productions from choosing foreign locations, disrupting the entire filmmaking process that often spans multiple countries.
JVL’s Perspective: Tariffs on Services and Broader Economic Implications
JVL expands the discussion beyond the film industry, highlighting the broader implications of imposing tariffs on services—a move that could destabilize several other sectors within the American economy.
Tariffs on Services vs. Goods
JVL contrasts tariffs on services with those on goods, noting the complexities involved. “If the administration is levying tariffs on services, that creates a very bad thing for very large industries in America that have been pretty supportive of Donald Trump so far,” he explains (06:35). This could open the door to taxing burgeoning sectors like cloud computing and information technology, areas where the U.S. currently excels and maintains a trade surplus.
Potential for a Command Economy
He warns that such policies could signal a shift toward a command economy, where the government exerts heavy control over both goods and services. “If he decides he wants to do that with services too, yikes,” JVL cautions (07:28). This centralization of economic control aligns with Trump's larger-than-life persona and his penchant for exerting dominance over various industries.
The Film Industry’s Response: Uncertainty and Practical Challenges
The hosts explore how the film industry might respond to Trump’s proposed tariffs, emphasizing the impracticality and confusion surrounding the policy.
Operational Uncertainties
Sonny Bunch articulates the concerns within Hollywood, stating, “Nobody knows what the actual tariffs are” and questioning the applicability of such a tariff on diverse aspects of filmmaking (05:09). The lack of clarity could lead to hesitancy among studios to commit to international productions, potentially stifling creativity and economic growth within the industry.
Defining a Foreign Movie
The episode highlights the difficulty in categorizing movies as foreign or domestic. For instance, a global franchise like "Mission Impossible" films in multiple countries, making it unclear what constitutes a foreign production. “Is it a tariff on the budget of the picture or on the ticket sales?” Sonny ponders (04:50).
Impact on Streaming Services
JVL introduces an example involving Netflix, questioning how tariffs would affect streaming platforms. “Do you charge Netflix an extra $12 million for the pickup cost?” he asks, illustrating the complexities of implementing such taxes on digital and international content distribution (05:09).
The Broader Economic Picture: Beyond Movies
The discussion extends to other sectors adversely affected by potential tariffs on services, with a specific focus on biomedical research and technology.
Biomedical Research Under Threat
JVL draws parallels to biomedical research, noting that Trump’s administration is hindering American strengths in this field under the guise of economic protectionism. “The Trump administration is killing another thing that America is very, very good at, biomedical research,” he states (15:11). This trend underscores a broader strategy of undermining key industries through confusing and destructive policies.
The Risk of Economic Explosion
Andrew Egger reflects on Trump’s confidence in his economic strategies, despite their apparent flaws. “His self-confidence truly knows no bounds as far as all this stuff is concerned,” Egger observes (16:35). The uncertainty and potential mismanagement posed by such tariffs could lead to significant economic instability.
Command Economy Concerns and Trump’s Motivations
The hosts discuss the implications of Trump's tariff proposal as part of a larger pattern of economic control and command economy tendencies.
Centralized Economic Control
Andrew Egger posits that Trump’s actions reflect a desire to centralize economic control, akin to a command economy. “He loves being the guy in the chair where everybody has to come to him as a supplicant,” Egger muses (15:11). This centralization attempts to reinstate nostalgic notions of American greatness but risks devolving into economic chaos.
National Security Rationale
Trump’s justification of tariffs as national security measures is scrutinized. “He can put a tariff on anything if he says it’s a national security threat,” Sonny Bunch notes (15:13). This broad and vague rationale provides Trump with a flexible tool to impose tariffs on virtually any industry, further cementing his control.
Conclusion: The Uncertain Future of American Economic Policy
The episode concludes with a reflection on the precariousness introduced by Trump’s tariff proposal. The hosts agree that while the policy is widely perceived as unfeasible and illogical, its mere introduction creates significant uncertainty within key industries like film and technology.
Final Thoughts
Sonny Bunch summarizes the industry's stance, emphasizing that the proposal is viewed as "insane and random" and unlikely to be implemented (11:19). However, the uncertainty itself is enough to disrupt ongoing and future projects, potentially derailing the competitive edge of American industries on the global stage.
Looking Ahead
Andrew Egger and JVL express concern over the long-term implications of such policies, questioning whether Trump’s confidence in a command economy will lead to economic downfall or if his supporters will continue to back his protectionist measures.
Bulwark Takes effectively captures the bewilderment and concern within various American industries in response to Trump's proposed tariffs on movies and potentially other services. The episode underscores the critical need for clear and coherent economic policies to maintain the competitive strengths of the United States in the global market.
Notable Quotes:
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Andrew Egger (03:55): “They don’t even know what the actual tariffs are you terrorizing, do you?”
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Sonny Bunch (05:09): “Nobody understands what it means to impose a 100% tariff on something as complex as movie production.”
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JVL (07:28): “If he decides he wants to do that with services too, yikes.”
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Andrew Egger (15:11): “He can put a tariff on anything if he says it’s a national security threat.”
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Sonny Bunch (11:19): “This is an insane and random proposal and unlikely to be implemented.”
