Trump Proposes 100% Tariffs on Non-US Films, Sparking International Backlash

Industry leaders warn that proposed tariffs might harm both US production and international collaborations.

Former US President Donald Trump has announced a controversial initiative to impose a staggering 100% tariff on films produced outside the United States. This move is part of his broader strategy to ramp up trade disputes with various nations, as he expressed concern about the declining state of America's film industry, referring to it as facing a "very fast death".

Trump took to his social media platform, Truth Social, to declare that he would direct the Department of Commerce and the Trade Representative to initiate the tariff process. He attributed the struggles of Hollywood to foreign countries tempting filmmakers with incentives, calling this trend a "national security threat". The proposal has drawn sharp criticism from film industry experts, with various stakeholders asserting that it could deliver a "knock-out blow" to the global film sector.

The announcement came amidst a backdrop where US filmmakers have increasingly sought international locales such as the UK and Canada for production due to lower costs. Several high-profile films, including "Deadpool," "Wolverine," and "Gladiator II," have all been produced outside the US, raising questions among industry experts about how the tariffs would be implemented.

Timothy Richards, founder of the Vue cinema chain in Europe, highlighted ambiguities in defining what constitutes a US film, contemplating whether the criteria would be based on the origin of funding, talent, or location of filming. The impact of Trump's proposed tariffs is already causing concerns, particularly within the UK film industry. The UK's Bectu union warned that these tariffs could severely affect tens of thousands of freelancers who rely on production jobs.

In response, UK government officials have reaffirmed their commitment to the film industry, asserting ongoing discussions for an economic deal with the US. The British Film Institute emphasized the importance of continued collaboration with American partners and expressed commitment to understanding the implications of Trump's tariff proposal.

As international reactions unfold, Australian officials and industry leaders have pledged to defend their own film sectors against potential fallout. Meanwhile, experts within the US film industry caution that imposing tariffs could provoke retaliation from other countries, ultimately harming the profitability of American films abroad.

Despite the challenges posed by Trump's tariffs, the US remains a key player in the global film production landscape, reporting a production expenditure of $14.54 billion last year, despite a significant dip. The Motion Picture Association has yet to comment formally on the situation as industry members brace for possible economic ripple effects from the proposed trade policies.