In a surprising twist that’s turning heads across both Hollywood and Washington, Disney Chief Financial Officer Hugh Johnston has responded to President Trump and his proposed film tariff with something most didn’t expect—encouragement.
During a CNBC interview following Disney’s quarterly earnings report, Johnston addressed Trump’s call for a 100% import tax on movies made outside the United States. Rather than outright rejecting the idea, the Disney executive offered a surprisingly diplomatic take.
Donald Trump speaks at a rally the night before being inaugurated as the 47th President of the United States of America – YouTube, Washington Post
“It’s a little bit early to try to do the math on 100% tariffs or anything like that,” Johnston said. “What I was actually most encouraged by was the President talked about the fact that he wants to help the industry and he wants to make the industry stronger. We certainly are more than happy to help in terms of designing things that would make sense to make the industry stronger, and we look forward to doing that.”
That statement places Disney—widely known for its left-leaning corporate image—on an unexpectedly cooperative footing with the Trump administration, especially on an issue that has rattled much of the entertainment industry. The tariff proposal, reportedly part of a “Make Hollywood Great Again” plan delivered by actor Jon Voight to the President, includes a 120% tax on foreign-produced film and TV content and a repeal of long-standing media ownership regulations.
While many in Hollywood blasted the idea as economically destructive, Johnston’s tempered response and openness to collaboration suggest that Disney may be preparing for a future where domestic production is not only incentivized—but prioritized.
A Strategic Alignment with Newsom?
This comes just days after California Governor Gavin Newsom proposed an ambitious expansion of the state’s film tax credit program. Newsom’s pitch would more than double California’s current film incentive package from $330 million to $750 million annually. He also floated a federal-level partnership with the Trump administration to create a $7.5 billion tax credit plan aimed at bringing production back to U.S. soil.
Gavin Newsom speaking at Climate Week in NYC – Photo Credit: Office of the California Governor, Public domain, via Wikimedia Commons
If Trump’s tariff is the stick, Newsom’s plan is the carrot. And both could work in tandem to realign the film industry’s global pipeline.
Ironically, it may be one of the rare moments of cross-party consensus: a populist Republican president and a progressive Democratic governor both pushing to bring Hollywood jobs back to America. And Disney, caught in the middle, appears ready to benefit from either approach.
Domestic Infrastructure in Place—But Global Stakes Are High
Disney may be uniquely positioned to weather changes in trade policy due to its substantial U.S. production infrastructure, with active studios and sets in California, Georgia, and Florida. Johnston emphasized that the company “already does a fair amount of production in the United States” and suggested that any increase in domestic shoots could be easily accommodated.
However, it’s not the full picture.
(L-R): Osha Aniseya (Amandla Stenberg) and the Stranger in Lucasfilm’s THE ACOLYTE, season one, exclusively on Disney+. ©: Disney Abu Dhabi Expansion Raises Eyebrows as Virtue Signaling American Company Partners With Restrictive Middle Eastern Regime
Major Disney franchises—particularly Star Wars and Marvel—have long relied on international production hubs, especially the United Kingdom. Pinewood Studios outside London has served as a primary location for numerous blockbusters, taking advantage of significant UK film tax credits and financial incentives. If Trump’s proposed 100%–120% tariffs on foreign-produced film and television content are implemented, those overseas shoots could suddenly become much more expensive.
The result? Disney might be forced to reconfigure decades of international production strategy or face sharply increased costs on its tentpole properties if this Trump tariff goes into play. That possibility could reshape where—and how—Disney tells its biggest stories.
Still, Johnston’s remarks suggest the company sees opportunity in change. With facilities and crews already operating across the U.S., Disney may be better prepared than most to pivot if the tariffs gain traction.
Industry Still Wary
Despite Disney’s apparent calm, most of the entertainment industry remains on edge. Studio execs and independent producers warn that steep tariffs could disrupt long-standing co-production agreements, balloon budgets, and trigger retaliatory trade policies in Europe and Asia.
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Donald Trump clasps hands with Sylvester Stallone – YouTube, SkyNews Australia
Yet Johnston’s remarks stand in contrast to the panic. Rather than push back, Disney’s top financial officer signaled a willingness to collaborate with Trump’s team—so long as the end goal is a stronger, more competitive U.S. film industry.
Do you think Disney will cooperate with the Trump film tariff? Sound off in the comments and let us know!
If this isn’t another epic Trump troll on leftists, then there’s more to this than we’re seeing right now. Like how NPCs and especially MSM is obsessed with how “tHe TrAdE wAr iS kIllInG ThE eCoNoMy!” when we’re seeing regular job growth and economic stimulation while China is imploding as decades of bad state management and corruption are coming home to roost.
I can see one angle: watching Hollywoke more closely to make sure they adhere to anti-DEI policies lest they lose any and all federal funding. We all know they’ll try and do so by renaming things (BRIDGE, for example) so I expect several studios to go under without their government money.
If Hollywoke actually cared about America, I could see this being a protective practice. But they hate this country, so that idea makes no sense.
*Maybe* a signal that D’Amaro and company are getting ready to change course once Iger retires. I expect that announcement later this year now.