The threat of imposing 100% tariffs on Donald Trump’s overseas films will be “devastating” for the country’s major Hollywood production hubs, including the UK, Canada, Australia and New Zealand, media executives warned.
However, the US film industry and film chains will also be hit hard. Studios have to engulf much higher costs, and consumers could face higher ticket prices, executives and analysts said.
President Trump said Sunday night that he wanted to introduce “100% tariffs” on films coming to the US because “the American film industry is losing very fast,” but other countries said “using incentives to separate filmmakers and studios.” He did not provide details.
Netflix stocks fell more than 5% in pre-market trading on Monday, reflecting fear of higher costs. Disney also fell 3%, despite media executives questioning how tariffs actually work.
London-based media analyst Claire Enders explained that potential tariffs will be “catastrophic” for major production hubs, including the UK. “These are important services for the UK,” Enders said. “We’ve been making films in parallel with the United States for 100 years.”
Enders added that this was one of the first Trump has targeted services through his tariff plans and would raise new concerns about a service-driven economy such as the UK.
Matthew Diener, CEO of Screen Producer Australia (SPA), said tariffs “send shockwaves” through the film industry around the world.
However, media executives have raised questions about how tariffs actually work, given that films are often distributed globally across streaming platforms and not the physical benefits of passing the boundary when shown in US cinemas.
“What is the sense of tariffs that can be placed on Netflix shows made in the UK and distributed worldwide on the Internet?” said Peter Bazalgett, former chairman of British broadcaster ITV and an adviser to the UK government’s creative industry.
Robert Downey Jr., actor at the 2024 Comic-Con International in San Diego, California. The US state has its own financial offer to seduce filmmakers ©Matt Winkelmeyer/Getty Images
The fate of the industry depends on what the US president means by filmmaking, if this includes the kind of high-end streaming series made by global platforms such as Netflix and Amazon that are mostly spending overseas, Bazalgett said.
If tariffs are imposed on blockbuster film productions, UK studios “doesn’t harm it as if they were including the work that the streamers did,” Bazalgette added.
Executives say the free trade in the global film industry is very economically important for the US, where the labor and facilities are more expensive. They warned that mutual tariffs are extremely damaging given that most of the money is made outside of the US.
The US film and television sector generated a trade surplus of $15.3 billion in 2023, winning $22.6 billion in exports, and according to the Film Association, there was a positive balance of trade in all major markets around the world. The industry operates a trade surplus that is larger than each of the telecoms, transportation, insurance and health-related services sectors, the association said.
Still, the US has lost ground for the past 20 years in its global battle with European and Asian countries, attracting filmmakers with generous offers of tax incentives to offset some of the costs of production.
Production in Greater Los Angeles fell 5.6% in 2024, making it the second most productive year to date, industry body film said. Only 2020, which was disrupted by the global Covid-19 pandemic, said the level of filming was low.
Instead, Hollywood studios and streamers have resorted to countries such as the UK, which offer world-class facilities, access to talented staff, and generous tax incentives along with a common language.
The British Film Institute in February said spending on film and high-end television production rose by nearly a third in the UK, rising to £5.6 billion in 2024, with films like Wicked Made in the Nation.
In 2024, nearly two-thirds of the UK filmmaking were from five major US studios and three major US streaming platforms, Netflix, Apple and Amazon.
The UK is not alone, and some European countries have even higher tax credits. Last year, Australia promoted tax incentives for foreign films and television series. This already attracted films such as The Man of Autumn and the Kingdom of Kingdom.
California has its own financial offers, which includes $330 million annual film and television tax incentive programs.
