US President Donald Trump has announced plans to impose 100% tariffs on films produced in foreign countries, intensifying ongoing trade disputes with nations globally.
Trump announced that he was directing the US Department of Commerce and the Trade Representative to initiate the process of imposing a levy, citing the rapid decline of America’s movie industry as a pressing concern.
He attributed the situation to a “concerted effort” by other nations that provide incentives to lure filmmakers and studios, labeling it a “National Security threat.”
A union has cautioned that his remarks could significantly hurt the industry. They highlight a trend in which filmmakers have increasingly departed from Hollywood for locations such as the UK and Canada to pursue more affordable production options.
In a recent post on his Truth Social platform, Trump stated, “It is, in addition to everything else, messaging and propaganda!”
“A CALL FOR AMERICAN-MADE MOVIES ONCE MORE!”
US Commerce Secretary Howard Lutnick addressed the announcement, stating, “We’re on it.”
The specifics surrounding the move remain ambiguous. Trump’s statement left unclear whether the tariff would extend to American production companies creating films overseas.
In a notable trend, several high-profile films from American studios have been filmed outside the United States. These include titles such as Deadpool & Wolverine, Wicked, and Gladiator II.
The tariffs’ application to films available on streaming platforms such as Netflix and those screened in cinemas remains uncertain, as does the method of their calculation.
Timothy Richards, the founder of the European cinema chain Vue, questioned how former President Trump would characterize a film from the United States.
In an interview with BBC Radio 4’s Today program, he asked, “Is it where the money comes from?” What about the script, the director, the cast, and the filming locations?
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The proposals’ impact on films such as Wicked remains uncertain, given that it was filmed in the UK but produced by an American studio.
Mr. Richards noted that the expenses associated with shooting in Southern California have increased considerably over the past few decades, leading to a shift in production locations.
“However, he emphasized that it goes beyond merely the financing itself,” he stated.
“One of the reasons the UK has excelled in the film industry is due to its highly experienced and skilled production crews, regarded as some of the best globally. As the saying goes, ‘the devil will be in the details.'”
In a recent statement, the UK media union Bectu expressed concerns that the proposed tariffs could significantly hinder the industry’s recovery from the pandemic and a subsequent slowdown.
Philippa Childs, the union chief, emphasized to the BBC the urgent need for government action to protect this crucial sector and to support the freelancers who drive it, framing it as a matter of essential national economic interest.
The UK’s Department for Culture, Media & Sport, the British Film Institute, and the Motion Picture Association, which advocates for the five major US film studios, have yet to respond to BBC inquiries for comment.
Despite various challenges, the United States remains a significant global film production center, as highlighted by research from the movie industry analysis firm ProdPro.
The latest annual report reveals that the country spent $14.54 billion (£10.94 billion) on production last year, a 26% decline compared to 202
NPR Radio film critic Eric Deggans has raised concerns that the potential introduction of tariffs could inflict additional damage on the industry.
He informed the BBC that other nations might retaliate by imposing tariffs on American films, which could complicate the ability of these films to generate profits in international markets.
“He noted that the tariffs in America could potentially lead to more harm than benefit.”
According to ProdPro, spending has risen in countries such as Australia, New Zealand, Canada, and the UK since 2022.
In response to Trump’s comments, Australia’s Home Affairs Minister Tony Burke asserted, “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”
Prime Minister Christopher Luxon of New Zealand announced that his government is awaiting additional information regarding the proposed tariffs.
“We will undoubtedly serve as a strong advocate and champion for that sector and industry,” he stated during a news conference.
In a strategic move before his inauguration, Trump designated three prominent film stars—Jon Voight, Mel Gibson, and Sylvester Stallone—as special ambassadors. Their mission: to advocate for business opportunities within Hollywood, a sector he characterized as a “great but very troubled place.”
At that time, Trump stated: “They will serve as Special Envoys to me to bring Hollywood, which has lost much business over the last four years to foreign countries, BACK—BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”
Since his return to the White House in January, Trump has enacted tariffs on various countries globally.
He contends that tariffs, which are taxes imposed on imported goods, will enhance the competitiveness of US manufacturers and safeguard employment opportunities.
As a consequence, the global economy is facing significant turmoil, with projections indicating an increase in prices for goods worldwide.
Before the latest announcement, the US film industry had already felt the effects of the repercussions stemming from Trump’s trade policies.
In April, China announced a reduction in the quota for American films that permitted entry into the country.
The China Film Administration has stated that the US government’s misuse of tariffs on China will likely lead to a decline in the domestic audience’s favorability towards American films.
“The commitment to adhere to market regulations, honor audience preferences, and implement a measured decrease in the importation of American films has been clearly stated.”
