WASHINGTON DC: Donald Trump wants to impose a 100% tax (tariff) on films made outside the U.S. He claims foreign film industries are hurting Hollywood, which he says is dying quickly.
He blames countries like the UK and Canada for offering financial support to attract film productions away from America. Trump calls this a “national security threat”.
On his social media site, Truth Social, Trump said: “Hollywood is being destroyed… WE WANT MOVIES MADE IN AMERICA, AGAIN!”
US Commerce Secretary Howard Lutnick replied, “We’re on it.”
However, many details are still unclear. For example:
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Will American studios filming abroad be affected?
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Will the tariff apply to streaming platforms like Netflix?
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How will a “foreign” film be defined?
Timothy Richards, founder of cinema chain Vue, asked: “Is it based on the script? The actors? Where was it filmed or funded?”
Filmmaking in Southern California has become very expensive, pushing production abroad. The UK has gained popularity due to tax breaks and experienced crews.
The UK’s Bectu union warned the move could seriously harm the international film industry and thousands of freelance workers, especially as the industry is still recovering from Covid and recent slowdowns.
Union leader Philippa Childs said the UK government must act fast to protect its film sector.
The UK government said it is still in trade talks with the US and will announce plans to support the creative industries soon.
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e British Film Institute said it is working with the government and industry partners to understand Trump’s proposal. It hopes to maintain good working relationships with the US.
Many recent big movies were filmed outside the US by American companies, including Deadpool & Wolverine, Wicked, and Gladiator II.
The US film industry still leads globally, despite some struggles. A recent report showed $14.54 billion (£10.94 billion) was spent on production in the US last year, down 26% from 2022.
Critics warn Trump’s plan might backfire. Film critic Eric Deggans told the BBC that other countries might hit back with their tariffs, making it harder for US films to succeed internationally.
Australia and New Zealand also responded. Australia said it will defend its screen industry, and New Zealand’s Prime Minister said more details are needed but promised strong support for local productions.
Trump has used tariffs since returning to office in January. He says they protect US jobs and industries, but others argue they hurt the global economy and raise prices.
In April, China cut the number of American films allowed into its cinemas, blaming US tariffs and saying audiences were losing interest in US-made movies.
