Grace Loveday
Continuing on with his seemingly never-ending tariffs, US President Donald Trump has found a new product to tax: movies.
On 4th May 2025 Trump declared that he is authorising the start of a 100% tariff on any film produced outside of the US.
His justification for raising the cost of entertainment is the American film industry dying a “very fast death” due to films that produce and shoot outside of the US.
How accurate is Trump’s claim?
While Trump is no stranger to making wild claims, there appears to be some truth to this one.
Shoot days in Los Angeles have declined 22% in the first quarter of 2025 compared to 2024.
In fact, many beloved American blockbusters produce and shoot outside the US such as Barbie (2023), Mission: Impossible – the Final Reckoning (2025) and several Marvel projects.
Along with preferring to shoot on location instead of creating famous landmarks with CGI, there’s another reason production companies choose to shoot outside the US: financial incentives.
Several countries encourage film production by offering tax breaks. The UK and Australia are notable examples. The UK offers a taxable credit of 34% and Australia grants a 30% tax rebate.
In fact, the latest instalment in Marvel’s slew of films, Avengers: Doomsday (2026) is set to be partially filmed in London.
However, with the US viewing this as “national security threat”, the tariffs could pose serious damage on countries’ entertainment industries.
Impact of Trump’s tariffs on film industries globally
With a film sector worth £1.36 billion, the UK have enjoyed being the ‘Europe of cinema’ for years, however the threat of tariffs has the potential to derail the entire industry.
The production of American films contributes significantly to both the UK’s economy and employment rates. Barbie development generated more than £80 million for the UK’s economy and created 685 jobs.
According to CEO of UK production company Goldfinch, Kirsty Bell, freelancers are going to be jobless if the UK loses the ability to produce American films.
Comprised of more than 195,000 people, the livelihoods of British filmmakers now hang precariously in the balance.
How will Trump’s tariffs work?
Another question posed by Trump’s announcement is exactly how the tariffs will work.
The White House offered no perspective on whether the tariffs will only be imposed on films released in the cinema or if streaming services will also fall under the axe. It’s also unclear if they calculate tariffs using box office revenue or production costs.
Another pressing query arises: what makes a film American? Keeping in line with his vague statements, Trump didn’t clarify what classes a movie as made in America.
Does all the production have to be using American companies? Or does a film shot entirely in the US suffice? Will that cause US film budgets to increase exponentially because instead of shooting on location filmmakers must resort to CGI to create famous landmarks?
What is the future of the movie industry?
The fact that there are so many questions and so much is unknown means the future of the entertainment industry is now uncertain.
Alongside very valid questions about the loss of jobs globally, there are concerns about the implications on existing franchises.
US production companies own many beloved movie franchises such as James Bond and Harry Potter. US giants Amazon and Warner Brothers own these franchises respectively.
Amazon’s acquiring of the Bond franchise rights in 2025, coupled with the recent threat of tariffs, are causing fear that 007 will have a permanent reassignment to the CIA.
Will the increasing costs caused by tariffs result in the ‘Americanisation’ of franchises?
If more and more movies are set and shot in the US to ensure the film has an American theatrical release, then non-English speaking films will become much rarer.
As media is one of the primary ways we form our opinions about other cultures, Trump’s tariffs on movies “produced in foreign lands” could result in more cultural divide.
The narrowing of media to a solely American landscape creates the conditions for more uninformed stereotypes to take root in the US.
How will tariffs impact cinemas?
There is also a fear that as tariffs double the costs of films shown in America, cinema tickets will have to increase.
Cinemas are an increasingly dying industry and it appears that Trump’s tariffs may be the final nail in the coffin, ensuring the supremacy of streaming services.
Overall, Trump’s proposed tariff on movies will have an enormous impact on the entertainment industry globally and may even change the nature of how films are made and released.
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Featured image courtesy of Krists Luhaers via Unsplash. No changes were made to this image. Image license found here.
Grace Loveday
Hi I'm Grace, a student journalist with a focus on politics and current affairs. I'm interested in how politics affects people on a human level. I am also a writer for The Courier, (Newcastle uni's student paper)