ALBUQUERQUE, N.M. – The film industry is on the hot seat as President Trump announces he wants to put a 100% tariff on movies made outside of the United States.

While there’s confusion on how you add a tariff to a digital product, the bigger question some people have is, how will this impact the film industry in New Mexico?

KOB 4 spoke with a local film studio Tuesday to get their thoughts on the matter.

“They can chase the subsidies and that’s what they’re doing, and they can afford to,” said Lycee Anaya, co-owner of Vault Studios ABQ. 

Over the years, major film companies have taken their business out of the states and given it to other countries. Their excuse? Their bottom line.

“When the subsidies dry up, they’re like alright peace we’re out,” said Anaya.

But is filming outside of the U.S. really that much cheaper? According to Anaya, that’s not always the case.

“If you’ve actually looked at the cost of doing something in India or China where it has been known that it’s less expensive, we’re no less expensive than that,” said Anaya. 

The good news is New Mexico can compete with prices from abroad because of the tax credits offered by the state. Those credits can range anywhere from 25 to 40%. The struggle is getting those companies to stay.

“They’re coming here, they’re filming, and then they’re leaving. Post. There’s not enough post here. The client likes to be near their project,” Anaya said. 

That’s why Anaya and her business partner, Kat Bloom, created Vault Studios with the hope of training future filmmakers and editors to keep the film industry alive in New Mexico.

“There’s absolutely no way to have a building or a force without a foundation. If we don’t have teachers and people teaching this stuff, we’re always gonna have to bring people in. And if we always have to bring people in, they’re always gonna want to leave,” Anaya said. 

So with the larger companies being pushed to keep their business in the states, local studios are hoping this will give talented New Mexicans a chance to have their names on the big screen.

“You look at those credits. Those are not fake people. That’s a lot of jobs that could be here,” said Anaya. 

President Trump said that he will be meeting with industry executives at some point soon to discuss how to keep production companies here in the U.S.. 

No matter what happens with the proposed tariffs, Vault Studios plans to continue teaching and training students who want to pursue a career in the film industry.