100% tariffs with non-US movies to be hit Trump says

100% tariffs with  non-US movies to be hit Trump says

BBC news

Watch Trump on non-US movie tariffs: 'Hollywood is being destroyed'

Donald Trump says he will hit films made in foreign countries with 100% tariffs, as he ramps up trade disputes with nations around the world.

The US president said he was authorising the Department of Commerce and Trade Representative to start the process to impose the levy because America's film industry was dying "a very fast death".

He blamed a "concerted effort" by other countries that offer incentives to attract filmmakers and studios, which he described as a "national security threat".

Filmmakers have for years left Hollywood for destinations including the UK and Canada to lower costs. One non-US union said the tariff plan would be a "knock-out blow" to the international industry.

Trump said on his Truth Social platform: "It is, in addition to everything else, messaging and propaganda!"

"WE WANT MOVIES MADE IN AMERICA, AGAIN!"

US Commerce Secretary Howard Lutnick responded to the announcement, saying "We're on it".

But the details are unclear. Trump's statement did not say whether the tariff would apply to American production companies producing films abroad.

Several recent major films produced by US studios were shot outside of America, including Deadpool & Wolverine, Wicked and Gladiator II.

It was also unclear if the tariffs would apply to films on streaming services, such as Netflix, as well as those shown at cinemas, or how they would be calculated.

The founder of European cinema chain Vue, Timothy Richards, questioned how Trump would define a US film.

Speaking to BBC Radio 4's Today programme, he said: "Is it where the money comes from? The script, the director, the talent, where it was shot?"

What impact might Trump's Hollywood tariffs plan have?

Mr Richards said the cost of filming in southern California had grown significantly over the last few decades, prompting filmmakers to move production to locations including the UK, which have increasingly offered tax incentives and lower costs.

"But it's not just the actual financing itself," he added.

"One of reasons UK has done so well is we have some of the most highly experienced and skilled film and production crew in the world.

"The devil will be in the details."

Meanwhile, UK media union Bectu warned the tariffs could "deal a knock-out blow" to the industry and its tens of thousands of freelancers, as it recovered from the pandemic and a "recent slowdown".

Union chief Philippa Childs told the BBC: "The government must move swiftly to defend this vital sector, and support the freelancers who power it, as a matter of essential national economic interest."

The UK government said it was "absolutely committed" to ensuring its film sector continued to thrive and create jobs, and would set out plans to do so in its upcoming Creative Industries Sector Plan.

It added that talks on an economic deal with the US were ongoing but a "running commentary" on progress was "not in the national interest". 

The British Film Institute said it was working closely with the government and industry partners in the UK and the US "while we understand the detail of the proposal".

"We want to keep collaboration at the heart of our sectors, so we remain a constructive partner to our friends in the US and internationally," it said.

Reuters Cynthia Erivo and Ariana Grande stand in front of a Wicked film poster on the red carpet.Reuters

It is unclear whether the proposals would affect films like Wicked, which was filmed in the UK but produced by an American studio

The US remains a major film production hub globally despite challenges, according to movie industry research firm ProdPro.

Its most recent annual report shows the country saw $14.54bn (£10.94bn) of production spending last year. Although that was down by 26% since 2022.

And NPR Radio film critic Eric Deggans warned that the tariffs, should they be introduced, could further harm the industry.

Other countries may respond by placing tariffs on American films, he told the BBC, making it "harder for these films to make profits overseas".

"It may create a situation where the tariffs in America are causing more harm than good," he added.

The Motion Picture Association, which represents the five major US film studios, did not immediately respond to BBC requests for comment.

Countries that have attracted an increase in spending since 2022 include Australia, New Zealand, Canada and the UK, according to ProdPro.

Following Trump's remarks, Australia's home affairs minister Tony Burke said: "Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry."

Industry body Screen Producers Australia said that while there were "many unknowns" about the plan, there was "no doubt it will send shock waves worldwide".