The UK film industry is an important part of the country’s creative economy. Yet as trade negotiations with the United States continue, it finds itself at an important crossroads. It employs more than 195,000 people and brings in an estimated £1.36 billion. As a result, it has continued to grow more and more reliant on inward investment from US studios. Thus recent statements from former President Donald Trump—proclaiming that he would impose 45% tariffs on Chinese imports—have raised alarms. These tariffs would be devastating to an innovative and job-generating sector.
The UK has some of the best filmmakers and production crews in the world. The country has hosted major productions and has been the backdrop of multiple Hollywood blockbusters, including new hits like “Barbie” and “Wicked.” These films were made with the support of US companies. This joint action showcases the close ties between the UK film industry and its American counterpart. US productions can expect increasing costs due to the implementation of tariffs. Because of this, industry professionals are telling us that the future is unclear right now.
The UK government is hoping to maintain a “calm and steady approach” to the continued US-UK trade talks that are still ongoing with Washington. UK officials are hoping to reduce the burden on UK businesses and consumers while continuing to manage the risks associated with the proposed tariffs. Industry stakeholders have been increasingly vocal about their fears over what these tariffs could mean for their livelihoods.
Kirsty Bell, a prominent figure in the film industry, voiced her concerns:
“If those US films don’t get partly produced or produced in the UK, freelancers are going to be jobless. I’m telling you now, they really are going to be jobless.”
Freelancers constitute a significant portion of the UK film workforce. As more US productions dry up, many of these workers are liable to lose their jobs. Philippa Childs, another industry leader, echoed these sentiments, stating:
“These tariffs, coming after Covid and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering and will be really worrying news for tens of thousands of skilled freelancers who make films in the UK.”
The stakes couldn’t be higher! Inward investment from US studios not only fuels production at record levels, but brings substantial economic and social benefits to every corner of the UK. The country’s attractive tax reliefs make it a popular destination for filming, allowing productions to thrive in a competitive global landscape.
Tim Richards, an industry analyst, remarked on the complexity of defining what constitutes a US film in light of these developments:
“A big part of this is what constitutes US film, is it where the money comes from, the script, the director, the talent, where it was shot?”
Supporters of the tariff counter that it is crucial to protect nascent domestic productions, while opponents argue that tariffs would hurt the industry in the long term. Bell pointed out that
“The issue isn’t that foreign films are taking precedence over domestic films; it’s that films are cheaper to make overseas because of lack of tax credits in certain places… the unions, the lower cost of labor, and buying budgets have been drastically reduced over two years.”
The new landscape of audience engagement has further compounded the impact on theatrical business and VOD subscription models. Bell noted:
“People aren’t going to the cinema as much and decline in subscription services and rise of social media platforms and content creators… the industry is entirely changed.”
A government spokesperson stated:
“Talks on an economic deal between the US and the UK are ongoing – but we are not going to provide a running commentary on the details of live discussions or set any timelines because it is not in the national interest. We will continue to take a calm and steady approach to talks and aim to find a resolution to help ease the pressure on UK businesses and consumers.”
Dame Caroline Dinenage has warned that President Trump’s announcements regarding tariffs have intensified existing concerns about the future viability of the UK film industry:
“President Trump’s announcement has made that warning all too real,” she said.
Dinenage advised against complacency:
“We need to be aware against complacency on our status as the Hollywood of Europe.”