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Indebta > News > Film industry reels as Donald Trump threatens 100% tariffs
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Film industry reels as Donald Trump threatens 100% tariffs

News Room
Last updated: 2025/05/05 at 11:22 AM
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Donald Trump’s threat to impose 100 per cent tariffs on films made abroad would be “devastating” for major Hollywood production hubs in countries including the UK, Canada, Australia and New Zealand, media executives warned.

However, the US film industry and cinema chains would also be hit hard, with studios likely to have to swallow much higher costs and consumers could face higher ticket prices, executives and analysts said.

President Trump said on Sunday night that he wanted to introduce a “100% tariff” on any movies coming into the US because “the Movie Industry in America is DYING a very fast death”, while other countries were using “incentives to draw our filmmakers and studios away”. He did not offer further details.

Shares in Netflix fell more than 5 per cent in pre-market trading on Monday, reflecting fears of higher costs. Disney was also down 3 per cent, even though media executives questioned how the tariffs would work in practice.

Claire Enders, a London-based media analyst, described the potential tariffs impact as “beyond devastating” for key production hubs, including the UK. “These are key services for the UK,” Enders said. “We have been making movies in tandem with the US for 100 years.”

Enders added that this was one of the first times that Trump had targeted services through his tariff plans, which would raise fresh worries for services-led economies such as the UK. 

Matthew Deaner, chief executive of Screen Producers Australia (SPA), said tariffs would “send shockwaves” through the film industry worldwide.

However, media executives also raised questions about how any tariff could work in practice, given films are often now distributed globally on streaming platforms, and are not a physical good that passes a border when shown in US cinemas.

“In what sense can you put a tariff on a Netflix show made in the UK and distributed worldwide over the internet?” said Peter Bazalgette, former chair of British broadcaster ITV and an adviser on the creative industries to the UK government.

Actor Robert Downey Jr at the 2024 Comic-Con International in San Diego, California. The US state has its own financial offers to lure filmmakers © Matt Winkelmeyer/Getty Images

The fate of the industry would depend on what the US president meant by film production, and if this included the sorts of high-end streaming series being made by global platforms such as Netflix and Amazon that account for the most spending overseas, Bazalgette said.

If tariffs were imposed on blockbuster film production it would be damaging for studios in the UK “but not as damaging as if he included the work done by the streamers”, Bazalgette added.

Executives say free trade for the global film industry is hugely economically important to the US, where labour and facilities are more expensive. Given most money is made outside of the US, any reciprocal tariffs would be hugely damaging, they warned.

The US film and TV sector generated a trade surplus of $15.3bn in 2023, and made $22.6bn in exports, with a positive balance of trade in every major market in the world, according to the Motion Picture Association. The industry runs a trade surplus larger than each of the telecommunications, transportation, insurance and health-related services sectors, the association said.

Even so, the US has lost ground in the past two decades in a global battle with countries in Europe and Asia to attract film makers with generous offers of tax incentives to offset some of the costs of production.

Production in Greater Los Angeles fell 5.6 per cent in 2024, making it the second least productive year ever, said industry body FilmLA. Only 2020, disrupted by the global Covid-19 pandemic, saw lower levels of filming, it said.

Hollywood studios and streamers have instead turned to countries such as the UK, which offer generous tax incentives alongside world-class facilities, access to talented staff and a common language. 

The British Film Institute in February said that spending on film and high-end TV production rose by almost a third in the UK to £5.6bn in 2024, with films such as Wicked made in the country.

In 2024, almost two-thirds spent on UK film production was from five major US studios and three major US streaming platforms — Netflix, Apple and Amazon.

The UK is not alone, with even higher tax breaks available in countries in parts of Europe. Australia last year boosted its tax incentives for foreign movies and TV series, which had already attracted movies such as The Fall Guy and Kingdom of the Planet of the Apes. 

California has its own financial offers, including a $330mn-a-year film and television tax incentive programme that state governor Gavin Newsom wants to expand to $750mn per year. 

Read the full article here

News Room May 5, 2025 May 5, 2025
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