ATLANTA — Georgia’s film industry is reacting to President Trump’s threat to impose a 100-percent tariff on all foreign-made films.

Randy Davidson, CEO of Georgia Entertainment, said while labor costs are cheaper overseas, many countries also lure productions away with countrywide incentives.

“The UK has their own incentives, Ireland has their own incentives, Australia has an incentive, and we’re over here the states are fighting among themselves and a federal incentive would be very attractive,” Davidson said.

He notes that Georgia currently offers a 30 percent incentive for productions, which he believes is the best such industry tax break in the country. Davidson argues that an additional national incentive added to it would help the U.S. remain competitive.

“If the federal government would lay a 10% incentive on top of that, that would be very helpful,” he said.

Productions taken overseas also mount different types of costs for movie makers, because sets have to be built to mimic the American cities which are the backdrops for their stories. Overseas travel itself adds up, not to mention some performers find themselves tired of the long trips. A strong dollar also plays a role, says Davidson. A dollar here might be worth $1.70 in New Zealand. Some other countries don’t require health care or unions for skilled labor.

“It’s the cheapest industry that I have ever been involved with, and I’ve been involved with a lot of industries,” says Davidson. “They watch every single penny.”

Davidson called the idea of a movie tariff “impractical” and “challenging to enforce,” as it’s a largely digital product--not something physical like olive oil or an auto part. Even shows and movies shot in the States have a lot of post-production work done by people in other countries.

He adds that, like other tariffs, the extra costs would ultimately be passed on to customers rather than studios.

He painted a picture of how it might look for moviegoers: “Going to buy your movie, there is a board that has films made overseas that are $40, and the films that are made in the U.S. that are $15 or whatever, because in the end, the consumer pays for the tariffs.”

Since the coronavirus pandemic and last year’s writers’ and actors’ strikes, in-state productions in Georgia are down nearly half--from an annual $4.4 billion to $2.4 billion.

Davidson said the focus should be on creating incentives, rather than tariffs, to strengthen the U.S. film industry. That industry, says Davidson, also has a positive ripple effect on a very long list of others ranging from cosmetologists and caterers to car rentals, hotels and hospitality, pest control, and lumber. For example, the wood that built the set for 2025’s Superman was purchased from lumber supply companies all over Georgia.

Entertainment tourism is also a huge industry. Davidson says people identify the locales in Tulsa King or The Walking Dead, for example, and flock to them--eating, sleeping, buying. In 2024, Georgia calculated record tourism equaling an $82 billion economic impact.

“It’s done marvels for the state of Georgia,” says Davidson, who believes the flight of productions to other nations is just a fad.

“I feel like if we can get our groove back, we can force a lot of these productions to come back here into America.”

WSB Radio’s Veronica Waters and Ashley Simmons contributed to this story.