Has Hollywood Peaked? And What Trump’s Film Tariff Might Mean for Video Production
- Bennett Creative
- May 9
- 6 min read
It’s been a wild year for Hollywood, and not in a good way. Production has been down, postproduction jobs are relocating, and now President Trump’s newly proposed 100% tariff on films produced overseas has thrown a wrench into an already fragile system.
At Bennett Creative, we’ve been tracking these changes closely—not just because they affect our industry, but because they point to a seismic shift in where and how video production happens in the U.S. And as an Austin film company, we believe Texas is primed to lead the next wave.
Let’s break down what’s going on—and what it means for creators, studios, and brands looking to produce high-end content.
Hollywood’s Production Crisis: A “Middle-Class Problem”
On April 15th, a town hall packed with film workers, postproduction pros, and scoring artists gathered at Evergreen Studios in Burbank to confront the reality: film production days in Los Angeles are down 22% from last year. According to FilmLA, on-location shoot days in the first quarter of 2025 plummeted, and the work hasn’t vanished—it’s simply gone elsewhere.
“This is not a tax giveaway. This is a job program,” said California State Assemblyman Rick Zbur, pushing back against lawmakers who view tax incentives as corporate handouts. “It’s going to cost a lot more not to act.”
State Senator Ben Allen echoed the urgency: “The studios don’t care where they do the work. They’ll do it anywhere. This is a middle-class problem.”
Why the flight? Other countries—especially Canada, the U.K., Austria, and Slovakia—offer robust tax incentives, grants and rebates that make filming abroad a no-brainer. Some countries have even built sound studios to draw creatives. On Truth Social, Trump said these incentives from other countries are a national security threat. He claims the tariffs will bring business back to the US.
Visual effects, scoring, ADR, and even animation have been quietly migrating out of California for years. In Vienna, scoring a film costs about one-third what it does in L.A. In Bratislava, it’s a tenth.
And California is struggling to catch up.
California’s lawmakers are pushing legislation that could increase the state’s tax incentive to 35% and include postproduction and unscripted TV shows. But in a state where business costs are already sky-high, it may be too little, too late.
The Hollywood Reporter quoted Noelle Stehman, member of the “Stay in LA” campaign, saying “This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto.”
Meanwhile in Austin: A Business-Friendly Boomtown for Video Production
With Hollywood on the rocks, creatives and companies are looking for a production hub that’s affordable, stable, and pro-business. And that’s where Austin shines.
“It’s always been really hard to do business in LA, but especially right now,” said Andrew Bennett, founder of Bennett Creative. “The cost of living is through the roof. It’s expensive to hire people. And the regulations make even basic logistics feel like a grind.”
Meanwhile, Texas—especially Austin—has become a haven for video production and film thanks to its business-friendly climate. As a right-to-work state, Texas doesn’t require union membership, offering more flexibility for producers and creatives. The cost of living and production is also significantly lower, giving filmmakers access to big-city talent without the sky-high prices of LA or New York. Some people are even shocked to know that Austin offers many state of the art video production studios.
“Austin has always been a strong alternative,” said Andrew Bennett. “But during the pandemic, that shift sped up. We saw a lot of people start producing here, and they realized they could get great results without the red tape.”
Texas is also home to strong talent pipelines from schools like UT, Rice, and Texas A&M. “There’s money here, there’s interest, and there’s community support,” Bennett added. “People want to invest in storytelling in Texas.” When COVID shut down California sets, Texas kept rolling—and many who came to shoot never left.
Texas already offers competitive production incentives through the Texas Moving Image Industry Incentive Program (TMIIIP), with up to 22.5% in rebates for qualified spending.
But just as important is the overall climate: flexible, affordable, and full of opportunity.
Austin in particular has become a hub of creative talent—with the energy of L.A. and none of the gridlock.
Trump’s Tariff: A Shock to the System
As if things weren’t chaotic enough, President Trump threw gasoline on the fire by announcing a proposed 100% tariff on films produced outside the U.S.
“The Movie Industry in America is DYING a very fast death,” Trump posted. He called international film incentives “a concerted effort by other Nations” and labeled them a national security threat.
The policy has already had a negative effect on Hollywood and Wall Street. Stocks for Netflix, Disney, Warner Bros. Discovery, and Paramount fell more than 2% before recovering slightly. Studio execs were blindsided—no one had been briefed, and it’s still unclear how the tariff would be applied. Unlike cars or electronics, movies aren’t imported in crates.
There is speculation that Trump’s tariff idea came after meeting with actor John Voight, CEO of SP Media Group Steven Paul, and SP Media Group/Atlas Comics president Scott Karol. John Voight was named one of Trump’s “special ambassadors” to Hollywood, along with Mel Gibson and Sylvester Stallone earlier this year.
If enforced, the tariff could discourage international production. But if other countries retaliate with tariffs of their own, it could gut Hollywood’s overseas profits. Most blockbuster films earn the majority of their revenue abroad. This is especially relevant for films like Mission: Impossible—The Final Reckoning and Jurassic World Rebirth, which were shot entirely overseas.
The Minecraft Movie, Made Abroad
One of the highest-grossing films this year, the film that has ten year olds everywhere yelling "Chicken Jockey!" randomly to their friends or breaking out into song with "la-la-lava chi-ch-chicken", is The Minecraft Movie. The movie was shot entirely outside the U.S. It’s a prime example of this issue. American intellectual property, American cast and crews… and a foreign filming location to capitalize on better economics.
That’s the current model: go where it’s cheaper and faster to produce, even if that means taking U.S. jobs overseas.
But the question now is: will the threat of tariffs shift the momentum back to the States—or create even more chaos?
"Next year, The White Lotus is gonna be set at a Hampton Inn," Jimmy Kimmel joked on his show Monday night.
Why Austin Is a Smart Bet for Brands and Studios
Whether or not the tariff is implemented, the industry is clearly at a turning point. And brands, agencies, and studios need to think strategically about where to produce their content.
Here’s why Austin should be on your radar:
Lower costs, higher quality – Austin offers competitive production rates, with access to top-tier talent and state-of-the-art equipment.
No union red tape – Work with who you want, how you want. That flexibility matters more than ever.
Booming creative scene – From music to film to tech, Austin is full of creators who are pushing boundaries and building new models.
Proven results – Bennett Creative has helped national brands produce commercials, branded content, and social campaigns right here in Austin.
What’s Next?
The decline of Hollywood isn’t just a California problem. It’s a sign that the traditional studio system is being reimagined—and in many cases, relocated.
From dwindling shoot days in L.A. to the uncertainty of Trump’s proposed film tariffs, the path forward will be defined by flexibility, speed, and cost-efficiency. That’s exactly what Texas—and Austin—offers.
Places like Austin are no longer “up-and-coming”—they’re fully equipped and fully credible. And with strong local support, affordable operations, and room to grow, they offer filmmakers and brands something LA no longer can: breathing room.
As the drama unfolds in California and Washington, creative teams everywhere are already casting their next locations.
And Austin? Filmmakers and marketers aren’t waiting around for the answers. They’re building. Creating. Scaling. And companies like Bennett Creative are leading the way—with visual content, storytelling, and websites that move the needle.
If you’re a brand looking for commercial video production or a studio needing postproduction support, consider heading to the place that’s always been a good alternative: Austin, Texas.
Bennett Creative is proud to be part of this next chapter. Want to make something great? Let’s talk.
Comments