Cinema United CEO Michael O’Leary is throwing his weight behind President Trump’s proposed 100% tariff on foreign films, arguing it could revitalize struggling American theaters—but critics warn the move may backfire on both Hollywood and consumers.
At a Glance
- President Trump proposes a 100% tariff on foreign-made films
- Cinema United CEO Michael O’Leary endorses the plan as a lifeline for U.S. theaters
- Hollywood voices concern over increased costs and reduced content diversity
- High taxes are driving domestic productions out of California
- A proposed $7.5B California film credit counters Trump’s federal effort
O’Leary’s Endorsement of Tariffs
Michael O’Leary, CEO of Cinema United, has openly supported President Trump’s aggressive proposal to slap a 100% tariff on foreign-produced films. In a statement to Breitbart, O’Leary said, “It is important to recognize that theatrical exhibition is not a Hollywood industry, but a Main Street industry.”
He emphasized that theaters are cultural cornerstones for local communities and should not be casualties of global film competition. Cinema United, which represents over 31,000 screens, is backing the move as part of a broader effort to boost U.S. theater infrastructure through federal collaboration and targeted tax incentives.
Watch a report: Trump’s Tariffs Target Foreign Films.
Pushback from Hollywood
Industry voices aren’t so enthusiastic. Film executives warn that the tariffs could shrink the cinematic ecosystem by limiting foreign titles and raising costs for theater owners and audiences alike. In an interview on KCRW’s The Business, Hollywood insider Masters said, “Production has fallen off a cliff very steeply here in Los Angeles.” He cited California’s punishing tax and regulatory environment as a major factor.
In response, Governor Gavin Newsom proposed a $7.5 billion film tax credit to retain productions within the state. But critics argue that such state-level efforts pale in comparison to federal policy impacts—and some fear that Washington’s growing involvement could lead to creative censorship under the guise of economic rescue.
A Global Shift in Filmmaking
While the tariff debate rages, international competitors are seizing the moment. Countries like Australia and Hungary are attracting big-budget productions with attractive tax incentives and lower operating costs. U.S. film production is increasingly leaving California, as studios chase friendlier financial climates abroad.
O’Leary remains steadfast. “We are committed to working with the administration, Congress and all interested parties who recognize and share the goal of ensuring that our local theatres retain both their economic and cultural significance,” he told Breitbart.
As political will aligns with economic urgency, Trump’s bold move could redefine the future of American cinema—for better or worse. The industry now stands at a crossroads, and the outcome could reshape both Hollywood and Main Street for a generation.
