Hollywood faces a crossroads as production shifts to cheaper, incentivized locations globally. Studios are lured overseas by tax benefits and lower costs, exacerbated by pandemic-induced changes and strikes. California's increased tax credits aim to lure productions back, while former President Trump's tariff threats on foreign films spark debate and uncertainty about enforcement and industry impact. Experts question the feasibility and consequences of tariffs, emphasizing the need for better U.S. incentives to retain sound stages and jobs.

Prepared by Christopher Adams and reviewed by editorial team.