Clarity sought on US film production tariffs
May 6, 2025
By Colin Mann
US President Donald Trump has announced plans to impose a 100 per cent tariff on all internationally-produced films. Trump said he was authorising the Department of Commerce and Trade Representative to begin the process to impose the levy because he feels that America’s film industry is dying “a very fast death”.
He blamed a “concerted effort” by other countries (such as Canada and the UK) that offer incentives to attract filmmakers and studios, which he described as a “national security threat”.
Trump, via his Truth Social platform, expressed: “It is, in addition to everything else, messaging and propaganda!” and “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
However, the full details behind Trump’s latest trade dispute remain unclear. Trump’s statement did not say clarify if tariffs would apply to US production companies producing films abroad. It is also unknown if the tariffs would apply to films on streaming services and, ultimately, how the tariff would even be calculated.
Commenting on the announcement, CMS Committee Chair Dame Caroline Dinenage MP said: “Last month the Culture, Media and Sport Committee warned against complacency on our status as the Hollywood of Europe. President Trump’s announcement has made that warning all too real. Making it more difficult to make films in the UK is not in the interests of American businesses. Their investment in facilities and talent in the UK, based on US-owned IP, is showing fantastic returns on both sides of the Atlantic. Ministers must urgently prioritise this as part of the trade negotiations currently underway. At the same time, the Government’s forthcoming Creative Industries Sector Plan needs to meet the challenge we set down of incentivising inward investment while also growing our domestic sector so British film and high-end TV can thrive.”
Also reacting to the news, Adrian Wootton OBE, Chief Executive of the British Film Commission, said: “While this announcement is clearly concerning, we need to understand the detail surrounding the proposed tariffs. We will be meeting with Government and our industry policy group in the coming days to discuss further. The UK and US have long enjoyed a strong, shared history of film-making, recently celebrating 100 years of creative collaboration and production. We look forward to continuing that for years to come, to our mutual benefit.”
Referencing the latest BFI Box Office data, David Blacher, head of media industry at RSM UK, said: “The latest announcement from US President Donald Trump of potential 100 per cent tariffs on films made outside the US will be another blow to the already struggling UK film and cinema industry, which is still recovering from the recent Hollywood writer strikes. This comes as the market share of UK independent films fell to 10.7 per cent in Q1 2025 from 13.5 per cent the previous year, while cinema admissions were 2% lower in the same period, as the decline in the UK cinema industry continues.
“That said, UK box office revenue increased 4 per cent to £231.6 million in Q1 2025, on the same period last year, suggesting customers are going to the cinema less often, but willing to pay more for premium, blockbuster films. The industry is still trying to get back on its feet after the 2023 Hollywood writer strikes which halted various productions and had a ripple effect throughout the sector and wider economy, leading to significant financial losses. The prospect of additional costs in the form of tariffs will only be a further setback for the industry at a time when it needs support the most. Cinemas’ margins are squeezed, and they are working hard to draw in customers, who are opting to stay at home to stream shows and films as a more cost-effective alternative. The UK film and wider creative industry desperately needs clarity from the government on opportunities for growth, which must be clearly set out in the eagerly anticipated Industrial Strategy, if the sector is able to thrive.”
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