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Answerman - How Will President Trump's Proposed Foreign Film Tariff Affect Anime?


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Joe Mello



Joined: 31 May 2004
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Location: Online Terminal
PostPosted: Fri May 09, 2025 8:44 am Reply with quote
Quote:
It blows my mind that tariffs are even being discussed when it comes to film

An explanation that holds water is that Trump is acting upon the suggestions of anyone who gets in Trump's ear (in this case Jon Voight) and suggest something that is beneficial to Trump or hurts people Trump hates. Tariffs have been a hyperfixation for Trump, and the use of "emergency" powers is his attempt to act unchecked while also looking like the Only I Can Fix It guy. It's possible (to me at least) that he's been looking for an excuse to declare martial law but hasn't found a crisis big enough yet to justify it.
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mdo7



Joined: 23 May 2007
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Location: Katy, Texas, USA
PostPosted: Fri May 09, 2025 8:53 am Reply with quote
Thanks for doing this Jerome/Answerman, you have no idea how many people are not only scared of the announcement, and you have no idea how the announcement blew up and created a tense environment on the ANN forum.
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AnswerJerome



Joined: 17 Mar 2025
Posts: 32
PostPosted: Fri May 09, 2025 9:37 am Reply with quote
mdo7 wrote:
Thanks for doing this Jerome/Answerman, you have no idea how many people are not only scared of the announcement, and you have no idea how the announcement blew up and created a tense environment on the ANN forum.


The pleasure is all mine. The announcement also blew my mind in a bad way.
The timeline I run through in my column notes that within 24 hours of the President's social media post the White House was peddling back on a few things. By Wednesday we were able to read John Voight's 7-point "Make Hollywood Great Again" action plan, and within it some clarity on thw whole tariffs thing.

Never say never with the current administration, but I don't believe we will see a flat tariff applied on film and TV content produced overseas, so anime should flow into the USA as normal for the immediate present.

There's actually some things in Voight's action plan I am actually quite excited about.

1. Yes. Absolutely create a 20% federal tax incentive for productions that stay in the USA, and absolutely allow it to be stacked on top of State Subsidies. Gerogia offers the best scheme in the USA offering up to 30% tax incentive. That means for every dollar you spend in state you get 30 cents back. This scheme has been running for nearly two decades, and it generates up to $4B investment in the state annually, and it has created 11,000 full-time, high-skilled jobs. More of that please.

2. Do not worry about the "US cultural relevance" test for qualification in a federal tax incentive scheme. The UK has been running this for decades too, and Voight handily attaches a copy of the UK Film Subsidy cultural test points as a comparison. It's not censorship or though policing.

3. The want to give money to cinemas to refurbish, update and repair. Voight believes that cinema-going is a great American past time, and I agree. Let's make cinema great again. Can we also make it affordable?

4. He is also proposing to bring back "Fin-Syn" rules. The reintroduction of the Financial Interest and Syndication Rules were a set of regulations enacted by the Federal Communications Commission (FCC) in the United States in 1970 and abolished in 1993.  
This rule prohibited the major broadcast television networks (ABC, CBS, NBC) from having a financial interest in the syndication of programming they aired in prime time. This meant they couldn't own the shows themselves or profit from their reruns (syndication).  
Th Syndication rule prevented networks from controlling the domestic syndication rights for shows they broadcast. They couldn't create their own in-house syndication arms to sell reruns to local stations. The Fin-Syn rules are widely seen as having created a "golden age" for independent producers and content creators in Hollywood. Here's how they benefited them.

Increased IP Ownership and Control is very important to me. We gave everything away to Netflix on the Cannon Busters deal.
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Beatdigga



Joined: 26 Oct 2003
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PostPosted: Fri May 09, 2025 9:46 am Reply with quote
It’s honestly a shame that Voight’s proposals couldn’t be hammered out into a bipartisan agreement. I have no love lost for Voight but a lot of the proposals weren’t bad since they were specifically designed to appeal to rank and file in production, set builders and the other people who often get ignored in the filmmaking process. It’s just the stupid tariffs that make everything worse.
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AnswerJerome



Joined: 17 Mar 2025
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PostPosted: Fri May 09, 2025 9:53 am Reply with quote
Beatdigga wrote:
It’s honestly a shame that Voight’s proposals couldn’t be hammered out into a bipartisan agreement. I have no love lost for Voight but a lot of the proposals weren’t bad since they were specifically designed to appeal to rank and file in production, set builders and the other people who often get ignored in the filmmaking process. It’s just the stupid tariffs that make everything worse.


For some, "tariff" is the most beautiful word in the English dictionary ;D
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Key
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Joined: 03 Nov 2003
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Location: Indianapolis, IN (formerly Mimiho Valley)
PostPosted: Fri May 09, 2025 10:02 am Reply with quote
The whole tariff announcement was concerning at first (and admittedly I got caught up in it a bit, too), but it was also immediately evident that the announcement was Trump's typical off-the-cuff declaration, one that had not been thought out at all in a practical sense. I'm now inclined to think that the thing fans should be much more concerned about is the removal of the "de minimis" qualifier on tariffs, as that is likely to have a big impact on the related hobby market (especially figmas, which is what currently matters most to me) if tariffs persist.

Also, thanks to Jerome for clarifying how much of a financial impact the overseas market has on current anime revenue for Japanese producers. Been getting tired of seeing this assumption that anime can just largely ignore all of this because overseas revenue is just a minor part of their finances.
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Philmister978



Joined: 12 Jun 2011
Posts: 530
PostPosted: Fri May 09, 2025 10:32 am Reply with quote
Beatdigga wrote:
It’s honestly a shame that Voight’s proposals couldn’t be hammered out into a bipartisan agreement. I have no love lost for Voight but a lot of the proposals weren’t bad since they were specifically designed to appeal to rank and file in production, set builders and the other people who often get ignored in the filmmaking process. It’s just the stupid tariffs that make everything worse.


You say that, but unfortunately in Trump's America, most of the people who were put into positions of power (even Elon during his tenure) are those who are almost 100% behind Trump and his methodologies and way of thinking (to the point they're willing to present him as a hero or as "heaven-sent"/"the true second coming of Jesus"/whatever blasphemous thing they think of). Be it tariffs, annexation, or even more serious things like Deportation, War or his other screwed up things like how he released the Jan. 6 mob, including the genuinely unstable ones who should be locked up and never released.

And that's the scary part, the way things are going, and how Trump never relents, it's getting to the point where he could very well instigate some war, and then these tariffs will be in the rearview as we all pray we don't die.
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AnswerJerome



Joined: 17 Mar 2025
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PostPosted: Fri May 09, 2025 10:44 am Reply with quote
Key wrote:
The whole tariff announcement was concerning at first (and admittedly I got caught up in it a bit, too), but it was also immediately evident that the announcement was Trump's typical off-the-cuff declaration, one that had not been thought out at all in a practical sense. I'm now inclined to think that the thing fans should be much more concerned about is the removal of the "de minimis" qualifier on tariffs, as that is likely to have a big impact on the related hobby market (especially figmas, which is what currently matters most to me) if tariffs persist.

Also, thanks to Jerome for clarifying how much of a financial impact the overseas market has on current anime revenue for Japanese producers. Been getting tired of seeing this assumption that anime can just largely ignore all of this because overseas revenue is just a minor part of their finances.


Anyone who believes that the anime industry can continue to thrive with its traditionally myopic worldview is probably not reading the news. The amount of domestic Japanese investment shifting into entertainment including anime, live-action, digital publishing, video games, and stupid junk like blockchain and NFTs is astounding. This is driven by the projected overseas growth of the sector, especially anime. Up until Sunday, Anime was considered a very safe bet.
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FishLion
Crazy Fangirl



Joined: 24 Jan 2024
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PostPosted: Fri May 09, 2025 10:48 am Reply with quote
A great and well written article! I am glad you were able to clarify how licensing and things would be affected, I did a very surface level analysis of how much the US anime market is worth and how much of the overall anime market could be lost to increased costs but figured that something like SVOD platforms even wanting to license as much anime could be affected if the price tag doubles.

I am inclined to agree that in the hobby space the de minimis exception as well as bigger projects affected by tariffs like canceled or delayed board games, special edition games, and other hobby physical hobby items are the biggest present threat. All that said, I do feel like they rolled back their statements because of backlash and people were right to freak out as it could have been what kept it from being a reality, but the most present danger to media based hobbies is the increased cost of manufacturing merchandise and board games.
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mdo7



Joined: 23 May 2007
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Location: Katy, Texas, USA
PostPosted: Fri May 09, 2025 10:48 am Reply with quote
AnswerJerome wrote:
Anyone who believes that the anime industry can continue to thrive with its traditionally myopic worldview is probably not reading the news. The amount of domestic Japanese investment shifting into entertainment including anime, live-action, digital publishing, video games, and stupid junk like blockchain and NFTs is astounding. This is driven by the projected overseas growth of the sector, especially anime. Up until Sunday, Anime was considered a very safe bet.


Yeah, and that includes crossing over with other pop culture like working with K-pop idols/artists and Hallyu contents.
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Hellsoldier



Joined: 21 Jun 2013
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Location: Porto,Portugal,Europe,Earth,Sol
PostPosted: Fri May 09, 2025 12:08 pm Reply with quote
Thanks for the clarification. I've been thinking about how you could even apply a tariff on an IP, and the ramifications of that. Well, aside from a terrible idea, it doesn't even seem to be a well-thought plan. Figures.
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samuelp
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Joined: 25 Nov 2007
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Location: San Antonio, USA
PostPosted: Fri May 09, 2025 5:49 pm Reply with quote
Tariffs on MG and royalties would be easy to legislate, but extremely difficult to collect in practice.

There's no agency in the US government that is setup to collect tarrifs on digital goods/services/IP, except perhaps the IRS, which has never had a role in tariff collection.

Besides the issues pointed out about getting around the exemptions for tarrifs on IP or information carrying things like books, it would take creating almost an entirely new agency (or branch of one), and combine it with highly intrusive reporting requirements far beyond anything we've seen before hand, and all these would affect big media corporations the most (aka the ones with the most lobbyists). It's scary but it's simply far less likely to occur than a lot of other crazy things this administration says. (thank god)
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Joe Mello



Joined: 31 May 2004
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PostPosted: Fri May 09, 2025 7:21 pm Reply with quote
AnswerJerome wrote:

There's actually some things in Voight's action plan I am actually quite excited about.

I don't disagree but just on what's been said today and Thursday evening, I find it hard to think that the current regime is genuinely interested in anything that could be perceived as helping people.
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RickyTheRat



Joined: 02 Jul 2023
Posts: 40
PostPosted: Fri May 09, 2025 7:30 pm Reply with quote
Joe Mello wrote:
I don't disagree but just on what's been said today and Thursday evening, I find it hard to think that the current regime is genuinely interested in anything that could be perceived as helping people.


Without getting too into specific politics plenty of the administration's doings are helping people: it just may not be the people you're concerned about or it's being done in ways you don't approve of or in ways that might even affect you personally in a negative way. The country is a big place and nothing is going to benefit everyone. It's all about the trade-off and in the grand scheme of things anime fans complaining about anime costing more is probably not high on a lot of things most people in the country concern themselves with so it would be an acceptable trade-off to them.
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Gem-Bug



Joined: 10 Nov 2018
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Location: Nova Scotia, Canada
PostPosted: Fri May 09, 2025 9:38 pm Reply with quote
RickyTheRat wrote:
Joe Mello wrote:
I don't disagree but just on what's been said today and Thursday evening, I find it hard to think that the current regime is genuinely interested in anything that could be perceived as helping people.


Without getting too into specific politics...


That's awfully convenient.

RickyTheRat wrote:
...plenty of the administration's doings are helping people: it just may not be the people you're concerned about or it's being done in ways you don't approve of or in ways that might even affect you personally in a negative way.


It is literally a very small subsection of the population vs pretty much everyone else, to varying degrees of severity.

RickyTheRat wrote:
The country is a big place and nothing is going to benefit everyone. It's all about the trade-off and in the grand scheme of things anime fans complaining about anime costing more is probably not high on a lot of things most people in the country concern themselves with so it would be an acceptable trade-off to them.


I'll concede that "anime costing more" is pretty trivial compared to government departments being shredded, citizens being abducted off of the streets, and National Parks, healthcare, food safety, sciences, public education(and most other things) being on the chopping block. Fortunately it's super easy to shrug, blurt some platitude like "you can't make everyone happy, I guess" and continue not giving a f##k. Confused
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