Former US President Donald Trump has announced a controversial plan to impose a 100 percent tariff on all films produced outside the United States. The move, revealed on his social media platform Truth Social, is part of a broader protectionist agenda targeting what Trump describes as a film industry that has been "stolen" from America by foreign competition. He criticises both international rivals and domestic leadership, singling out California Governor Gavin Newsom as "weak and incompetent" for allowing Hollywood productions to relocate abroad. Trump’s stated aim is to restore American moviemaking to its "golden age" by discouraging productions from filming outside the US, where generous tax incentives offered by other countries have lured many major projects away from Hollywood.

The potential implications for the British film industry are significant. The British Film Institute (BFI) reports that overseas investment accounted for 87 percent of UK film spending last year—a 78 percent increase compared with the previous year—highlighting the UK's role as a major hub for international film production. London and other UK locales benefit substantially from foreign productions, many of which are linked to US studios. While Trump previously suggested iconic franchises like James Bond would be exempt, Downing Street has expressed cautious concern, awaiting detailed clarification on whether the new tariffs would apply to UK-made films. A government spokesperson reiterated commitment to protecting the UK’s film industry, which employs millions and contributes billions of pounds to the economy, urging vigilance to safeguard its global competitiveness.

Industry experts and unions have criticised Trump’s tariff threat as lacking practical understanding of how the film industry operates. Philippa Childs, head of Bectu, the union for creative workers, warned that tariffs would be "completely unworkable" given the global connectivity essential to film production. She emphasised that the policy could jeopardise highly skilled UK workers and called on the British government to actively defend the sector against such risks. Analysts also question the legal basis and enforceability of a tax on films, which are not traded like conventional goods. Uncertainty remains over how tariffs would be calculated—whether by production costs, box office receipts, or some other metric—especially as modern films often involve co-productions spanning multiple countries.

US industry incumbents have remained mostly silent, though analysts warn the tariffs could raise costs for studios and viewers alike. Major studios such as Warner Bros Discovery, Paramount Skydance, and streaming firms like Netflix often film abroad to benefit from tax incentives and international partnerships, employing thousands of American workers as well. The abrupt imposition of a 100 percent tariff could disrupt these established practices, risking economic backlash. Stock prices of key film companies dropped following the announcement, underscoring investor wariness.

Legal and economic experts have also highlighted significant uncertainties about the feasibility and consequences of the policy. The digital nature of film distribution complicates efforts to apply tariffs, which might only cover physical imports but not streaming or digital sales. This raises questions about how the administration would enforce such a sweeping measure. Moreover, there is concern about retaliatory measures from trade partners, including the possible reintroduction of screen quotas or tariffs on American intellectual property overseas. This could endanger billions in US film exports—estimated at $22.6 billion in 2023—and thousands of related jobs.

Trump’s tariff announcement fits into his wider protectionist trade strategy, which includes newly imposed tariffs on imported pharmaceuticals, kitchen furniture, and heavy trucks from other countries. Despite lacking detailed implementation plans or timelines, Trump’s administration has tasked the Department of Commerce and the Office of the US Trade Representative with rolling out the tariffs, effective from October 1. The move has sparked debate over how far protectionist policies can go without harming the globalised industries they aim to defend. As the administration pushes ahead, both the American and international film sectors face a period of uncertainty that could reshape longstanding production and distribution models.

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Source: Noah Wire Services