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American Focus > Blog > Economy > Film industry reels as Donald Trump threatens 100% tariffs
Economy

Film industry reels as Donald Trump threatens 100% tariffs

Last updated: May 5, 2025 9:55 am
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Film industry reels as Donald Trump threatens 100% tariffs
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Trump’s Threat of 100% Tariffs on Foreign Films Could Devastate Hollywood Production Hubs

President Donald Trump’s recent threat to impose 100% tariffs on films made abroad has sent shockwaves through major Hollywood production hubs in countries like the UK, Canada, Australia, and New Zealand. Executives in the film industry warn that such a move would have devastating consequences not only for these countries but also for the US film industry and cinema chains.

Studios would likely have to bear much higher costs, which could ultimately lead to increased ticket prices for consumers. Trump’s rationale for the proposed tariffs stems from his belief that the American movie industry is declining rapidly, with other countries enticing filmmakers and studios with incentives.

Shares in Netflix dipped 2.5% following Trump’s announcement, reflecting concerns about increased costs. However, industry experts question the feasibility of implementing such tariffs, particularly in an era where films are distributed globally on streaming platforms.

Industry Impact and Uncertainties

Claire Enders, a media analyst based in London, described the potential impact of tariffs as “beyond devastating” for key production hubs like the UK, where film production has been closely intertwined with the US for a century. Matthew Deaner, CEO of Screen Producers Australia, echoed similar sentiments, emphasizing the global ramifications of such tariffs.

Despite the dire warnings, there are uncertainties about how the tariffs would be applied practically. Peter Bazalgette, a former ITV chair and industry advisor, raised questions about imposing tariffs on digital content like Netflix shows produced in the UK.

Analysts at Barclays predict that film studios may halt activities until there is clarity on the policy. The White House has not provided detailed information about the plan but emphasized the administration’s commitment to safeguarding national and economic security while “Making Hollywood Great Again.”

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Global Trade Importance and Industry Trends

The global film industry’s reliance on free trade is crucial for the US, which has been facing stiff competition from countries offering lucrative tax incentives to attract filmmakers. In recent years, Hollywood has seen a decline in production, with studios turning to countries like the UK for cost-effective options.

In 2024, Greater Los Angeles witnessed a 5.6% drop in production levels, the second-lowest in history, highlighting the industry’s shifting landscape. The UK, with its tax incentives and top-notch facilities, has become a favored destination for major US studios and streaming platforms like Netflix, Apple, and Amazon.

Similarly, countries in Europe and Asia are also ramping up efforts to lure filmmakers with attractive incentives. Australia, for instance, has enhanced its tax breaks for foreign productions, attracting major movies like “The Fall Guy” and “Kingdom of the Planet of the Apes.”

California, through its film and television tax incentive program, is striving to compete by offering substantial financial support to filmmakers. As the global film industry continues to evolve, the impact of potential tariffs on international productions remains a point of contention.

Overall, the uncertainty surrounding Trump’s proposed tariffs underscores the complexities of the global film industry and the interconnectedness of key players across various countries.

Additional reporting by James Politi in Washington

TAGGED:DonaldFilmIndustryreelsTariffsthreatensTrump
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