As part of his final act as New Jersey governor, Phil Murphy officially welcomed Netflix to Monmouth County. Netflix Studios Fort Monmouth will Miracle-Gro the Garden States already thriving film and TV production business, a desirable industry attracted by generous tax incentives. Murphy far prefers a carrot technique to the sticks of President Trumps threatened foreign-film tariffs.

What were doing here with Netflix is a carrot to attract them rather than hitting people over the head with sticks, Murphy told The Hollywood Reporter immediately following Netflixs groundbreaking ceremony at the decommissioned U.S. Army base in central New Jersey. Trumps international film production proposal is intended to Make Hollywood Great Again but benefits would also be felt in other states that have become production hubs, like Georgia, New York, New Mexico and, yes, New Jersey. Not that Murphy is rooting for it.

No, Im not because while [tariffs] on the surface would make New Jersey look more compelling, which I get, the partners that were dealing with Netflix is the best example theyre a global operation, Murphy told THR. So, if theyre hurt, while we might not be hurt literally, thats probably not good for the overall industry.

I believe you do what weve been doing, which is make it attractive for folks to come here as opposed to penalize. Thats my view on tariffs, he continued. Some folks deserve it because they violate the system, but overwhelmingly these are our allies who are our best partners in the world.

Some of those foreign allies include the U.K., Australia, Ireland and Spain, where tax incentives have enticed Hollywood productions beyond our borders.

It probably doesnt help that Trump is a MAGA Republican (like, quite literally the very first one) and Murphy is a staunch Democrat. But thats not the point here, especially when you consider the two have had a quite cordial if not friendly relationship. (Or at least they did until Trump set his DOGE sights on dismantling the Department of Education; you do not mess with the school system in New Jersey.)

Netflix co-CEO Ted Sarandos and New Jersey Governor Phil Murphy ready demo at Netflix Studios Fort Monmouth. Courtesy of Netflix On May 3, Trumppostedon his Truth Social platform that hes authorized the Department of Commerce and the United States Trade Representative to institute a 100 percent tariff on any and all Movies coming into our Country that are produced in Foreign Lands.

The Movie Industry in America is DYING a very fast death, Trump wrote. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States.Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!

Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands, his post continued. WE WANT MOVIES MADE IN AMERICA, AGAIN!

It took less than 24 hours for the cooler heads in the White House to walk that back a bit.

Although no final decisions on foreign film tariffs have been made, the administration is exploring all options to deliver on President Trumps directive to safeguard our countrys national and economic security while Making Hollywood Great Again, White House spokesman Kush Desai told THR on May 4.

Jon Voight, one of Trumps handpicked special liaisons to Hollywood (whether Hollywood agrees or not), has since proposed a federal film and tax incentive. Voights coalition in the endeavor includes his fellow special liaison Sylvester Stallone, the MPA, the Directors Guild of America (DGA), IATSE, SAG-AFTRA, Teamsters, Writers Guild of America (WGA) West and East, Independent Film Television Alliance, Producers Guild of America (PGA), Producers United and Film USA.