This week, former President Donald Trump has made headlines by announcing his consideration of a bold move. He’s considering a 100 percent tax on cars made elsewhere. He takes a courageous stand by arguing that America should be deeply troubled by the condition of her film industry. He says it’s on the verge of “dying a very rapid death.” With continued pains in the movie industry, Trump’s proposal comes at a time where protecting American jobs and increasing domestic production is critical.
The U.S. film industry has already undergone tremendous stresses, mostly due to the aftereffects of his first administration’s trade-related antics. Appropriately, for a state that’s a major global film production hub, recent trends reveal an unexpected twist. The result is that more and more big-budget films are today being produced overseas. North American studios were responsible for films such as “Deadpool,” “Wolverine,” “Wicked” and “Gladiator II.” They decided to make these films in the UK, now a favored location for filmmakers due to its experienced labor pool and generous tax breaks.
Production costs in southern California have skyrocketed over the last few decades. As a direct result, more filmmakers base their productions in countries such as the UK and Australia. These countries have not just lowered costs, they’ve sweetened the pot by offering significant tax incentives that make them even more attractive. Since 2022, the trend has fueled a boom in film production expenditures. Australia, New Zealand, Canada and the UK have been major winners from this spike.
Yet the legacy of Trump’s tariffs may have long-lasting impacts on this equation. Union chief Philippa Childs cautioned that such tariffs might “deal a knock-out blow” to the industry, which relies heavily on freelancers. Furthermore, NPR Radio film critic Eric Deggans warned that the proposed tariffs could make it “harder for these films to make profits overseas,” potentially harming the industry more than helping it.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” – US President Donald Trump
Even in his statement announcing the indictment, Trump underscored the salience of tariffs. He imagines them as saving and resuscitating American manufacturing and jobs. He indicated that he would appoint Hollywood veterans Jon Voight, Mel Gibson, and Sylvester Stallone as Special Envoys to facilitate this effort, stating that they would help bring business back to Hollywood “BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”
Though all of Trump’s proposals would work to benefit productions in America, the overall meaning is unclear. The real effect of these tariffs on productions such as “Wicked” is still unclear. This movie, while entirely filmed in the UK, was developed by a US-based studio. As Timothy Richards, founder of European cinema chain Vue, told The Guardian, those are key questions about what constitutes the criteria for imposing tariffs. For instance, would the method by which a film was financed, where scripts originated from, or where something was produced determine when such tariffs would apply, he wondered.
Or consider China’s recent decision to further cut the quota of American films permitted into the country. Adding to the current chaotic environment, this move is another blow. This act would make Trump’s goals all the more difficult if American films find scrolling restrictions in one of their biggest foreign markets.
Comparatively, industry experts and stakeholders have applauded and criticized Trump’s approach. Though many filmmakers applaud his plan to reinvigorate U.S. filmmaking, others voice a fear of the unintended consequences that could result. Deggans noted that tariffs may create a situation where “the tariffs in America are causing more harm than good.”
Australia’s home affairs minister Tony Burke expressed enthusiasm for backing local filmmakers in light of these changes. He stated, “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”
“It is, in addition to everything else, messaging and propaganda!” – US President Donald Trump
As discussions regarding these tariffs unfold, industry stakeholders will be watching closely to understand how they will impact film production trends and international collaborations. So the devil is certainly in the details of exactly how these tariffs are imposed and maintained.
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