Donald Trump just released a pretty ambitious plan. He wants a 100 percent tariff on movies made in what he refers to as “foreign lands,” making the national security case for the U.S. film industry. This audacious step will cause disruption in the international film marketplace. Industry leaders and lawmakers alike are raising alarm over its possible impact.
Trump frames his announcement as a response to what he deems a “concerted effort by other countries.” He thinks that these countries are conspiring to destroy American filmmaking. So he makes the case that foreign tax incentives lure studios and filmmakers out of the U.S. This is a very real threat to our national security. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” he shouted. The proclamation was part of his promise to push for more movies to be made in America.
Industry experts believe that Trump’s tariffs could deliver a “knock-out blow” to the United Kingdom’s film industry, which is still navigating the aftermath of the COVID-19 pandemic. With the pandemic already halting or postponing hundreds of productions, the industry would be rocked as many sought to get back on their feet. Philippa Childs, general secretary of the Broadcasting, Entertainment, Communications and Theatre Union (Bectu), tweeted that this leaves UK filmmakers in a “damn scary” position.
“This is really worrying news for tens of thousands of skilled freelancers who make films in the UK,” Childs stated. She further added, “These tariffs, coming after Covid and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering.”
The UK government likes to boast about its Independent Film Tax Credit program. This new investment would help attract both domestic and foreign productions to shoot here in the United States. The credit, administered by the British Film Institute (BFI), enables films with production budgets of under £15m to receive enhanced levels of tax relief. With Trump’s tariff plan on the horizon, even these incentives might not be enough to make productions shine if they’re headed for the highly sought-after U.S. market.
Dame Caroline Dinenage, a member of Parliament in the UK, recently opened up about these concerns. She made the case that the tariffs would threaten American businesses. “Making it more difficult to make films in the UK is not in the interests of American businesses,” she asserted. Her comments are symptomatic of a broader debate that Trump’s policies might end up doing more to harm U.S. interests than help them.
Matthew Deaner, CEO of Screen Producers Australia (SPA), expressed disappointment that there is still no clarity on the future of Trump’s plan. “At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented,” he said. He acknowledged that “there are many unknowns for our industry,” adding that the announcement would undoubtedly send shock waves worldwide.
Australia, sometimes called “Hollywood Down Under,” has long been an appealing place for international productions to shoot. Recently, it has hosted large-scale projects such as “The Fall Guy,” “Kingdom of the Planet of the Apes,” and “Thor: Ragnarok.” Given the impact of Trump’s tariffs, officials in Australia have been very clear about their determination to protect their film and TV industry.
“Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” stated Tony Burke, Australia’s Minister for the Arts. Countries with successful film industries are beyond dogged in their commitment to look after their own. They have powerful opponents in their path—tariffs that would ultimately stifle their success.
As for the proposed tariffs, industry insiders are hopeful that countries like Germany will be heavily impacted by Trump’s plans. The narrative international film industry production and distribution ecosystem is largely dependent on connectivity. Most movies today shoot all over the world, in both the domestic and global markets. The implementation of tariffs would greatly complicate these collaborations and lead to a far greater production cost for projects spanning multiple countries.
Furthermore, Screen Producers Australia highlights that Trump’s move could affect both foreign and American production companies engaged in overseas filmmaking. These companies are on the front lines dealing with the significant new challenges tariffs have created. Concerns are arising regarding the impact of these new policies on international cooperation and production relationships.