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Notes -
First of all: how is this an emergency? I don't follow the logic.
It's quite clear that Hollywood studios search for tax incentives both within and outside the US. That's nothing new. It is supposed to be getting worse. California is supposed to be suffering from this competition due to COL and alternatives., including in animation:
However, Hollywood gets the majority of the profit of VFX dominated films and maintains strong market share worldwide, especially at the higher budget ranges. The stories are still American-made.
The problem for film seems to be the confluence of increasing competition, COVID killing the habit and studios cannibalizing their own product. Would it really help to force all of these companies to produce and film stuff in the US, especially with AI looming? Seems like the problem of Indian VFX firms may solve itself.
I am seeing some takes on the more left-wing side that this is essentially Trump promising to break something in order to get another set of companies, and a perceived left-wing industry at that, to try to curry favor with him (he seems to be high on his ability to cause shocks merely by speaking). Though one wonders why he would. If this is a partisan thing the decay of California as the nexus for film and tv would be a win better than almost anything he could extract from them for the conservative movement.
Unfortunately for our Trade War Commander in Chief, I'm fairly sure movies are not subject to the authority he used for the other tariffs. Since he didn't do this by executive order but is letting the Department of Commerce handle it, probably their lawyers will tell them that. 50 USC 1702(b)(3).
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