Trump considering 100% tariffs on movies not made in the US

US President Donald Trump is considering imposing a hefty 100% tax on movies that are not produced in the United States. This announcement has sent shockwaves through the film industry, prompting many to express their concerns. Trump stated that he would engage with Hollywood executives following his declaration, as he believes that the American film industry is facing a rapid decline. On Sunday, he instructed the commerce department to initiate the process of implementing this tax, citing the urgent need to protect American filmmaking. However, on Monday, he appeared to soften his position, indicating that he would meet with industry representatives to ensure their satisfaction with his proposal. For years, filmmakers have been relocating from Hollywood to countries like the UK and Canada in search of lower production costs. A union representing non-US filmmakers warned that the proposed tax could deliver a devastating blow to the international film industry, describing it as 'messaging and propaganda. ' In response to Trump's announcement, US Commerce Secretary Howard Lutnick stated, 'We're on it,' but the specifics of the tax remain unclear. Trump's statement did not clarify whether the tax would also apply to American production companies that film abroad. A White House spokesperson mentioned that while no final decisions have been made regarding foreign film tariffs, the administration is exploring all options to fulfill Trump's directive to protect national and economic security while revitalizing Hollywood. Several recent major films produced by US studios, such as Deadpool, Wolverine, Wicked, and Gladiator II, were filmed outside of the United States. It is also uncertain whether the tax would extend to films available on streaming platforms like Netflix or only to those shown in theaters. Timothy Richards, the founder of a European cinema chain, raised questions about how Trump would define an American film. He asked, 'Is it where the money comes from? The script, the director, the talent, where it was shot? ' Richards noted that the cost of filming in Southern California has significantly increased over the years, prompting filmmakers to seek production locations in the UK, which offers tax incentives and lower costs. He added, 'But it's not just the actual financing itself; one of the reasons the UK has done so well is we have some of the most highly experienced and skilled film and production crews in the world. The devil will be in the details. ' Meanwhile, the UK media union Bectu cautioned that the tariffs could severely impact the industry and its many freelancers, especially as it recovers from the pandemic and a recent slowdown. Union leader Philippa Childs emphasized the need for the government to act swiftly to protect this vital sector and support the freelancers who contribute to it, stating that it is a matter of essential national economic interest. The UK government affirmed its commitment to ensuring the film sector continues to thrive and create jobs, with plans to be outlined in an upcoming Creative Industries Sector Plan. They also mentioned ongoing discussions regarding an economic deal with the US, but emphasized that providing a 'running commentary' on progress is not in the national interest. The British Film Institute stated that it is collaborating closely with the government and industry partners in both the UK and the US to understand the details of the proposal. They expressed a desire to maintain collaboration at the heart of their sectors, aiming to remain constructive partners with their US counterparts and internationally. It remains uncertain whether the proposed tariffs would affect films like Wicked, which was filmed in the UK but produced by an American studio. Despite facing challenges, the US remains a significant hub for film production globally. According to a recent report from movie industry research firm ProdPro, the US saw $14. 54 billion in production spending last year, although this figure represents a 26% decrease since 2022. NPR Radio film critic Eric Deggans warned that if the tariffs are implemented, they could further harm the industry. He noted that other countries might retaliate by imposing tariffs on American films, making it more difficult for these films to generate profits overseas. Deggans cautioned, 'It may create a situation where the tariffs in America are causing more harm than good. ' The Motion Picture Association, which represents the five major US film studios, declined to comment when approached by the BBC. Countries that have experienced an increase in film spending since 2022 include Australia, New Zealand, Canada, and the UK. Following Trump's remarks, Australia's home affairs minister Tony Burke stated, 'Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry. ' The industry body Screen Producers Australia acknowledged that while there are many uncertainties surrounding the plan, it will undoubtedly send shockwaves worldwide. New Zealand's Prime Minister Christopher Luxon also expressed that his government is awaiting further details regarding the proposed tariffs, stating, 'But we'll be obviously a great advocate, great champion of that sector and that industry.