The threat of Donald Trump to impose 100 percent fees on films made abroad would be “devastating” to major Hollywood centers in the UK countries, Canada, Australia and New Zealand, warned media leaders.
However, the American film industry and cinema chains will also be hit hard, with studios likely to swallow much higher costs and consumers can face higher ticket prices, executives and analysts said.
President Trump said Sunday evening that he wanted to present a “100%fee” in any movie coming to the US because “the film industry in America is dying a very fast death”, while other countries are using “incentives to attract our filmmakers and studios”. He did not provide further details.
Shares in Netflix dropped more than 5 percent in trading in front of the market on Monday, reflecting the fear of higher costs. Disney was also below 3 percent, although media executives asked how tariffs would work in practice.
Claire Enders, a London -based media analyst, described the potential impact of tariffs such as “beyond destruction” for major production centers, including the United Kingdom. “These are the main services for the UK,” Enders said. “We’ve made movies at the same time with SH.BA for 100 years.”
Enders added that this was one of the first time Trump had targeted services through his tariff plans, which would create new concerns about services led by services such as the United Kingdom.
Matthew Deaner, chief executive of Australia screen manufacturers (SPA), said the fees would “send shock waves” through the film industry around the world.
However, media leaders also raised questions about how any fee can work in practice, given that films are often globally distributed on transmission platforms, and are not a physical good that crosses a limit when shown in US cinemas.
“In what sense can you put on a fee on a Netflix show made in the UK and disperse all over the world online?” Said Peter Bazalgette, former chairman of the British broadcaster ITV and an advisor to the UK’s creative industries.
The fate of the industry will depend on what the US president meant from film production, and whether this included the types of high -level transmission series made from global platforms such as Netflix and Amazon that make up more costs abroad, Baselgette said.
If tariffs were to be set in blockbuster film production, it would be harmful to the UK studios “but not as harmful as it included work done by streamers,” Baselgette added.
Leaders say free trade for the global film industry is extremely economically important for the US, where work and facilities are more expensive. Given that most of the money was made outside the US, any mutual fee would be extremely harmful, they warned.
The US and TV sector in the US generated a $ 15.3BN trade surplus in 2023, and made $ 22.6 billion in exports, with a positive trade balance in every large market in the world, according to the Motion Picture Association. The industry runs a greater trade excess than each of the sectors of telecommunications, transport, insurance and health -related services, the association said.
Despite, the US has lost its ground in the last two decades in a global battle with countries in Europe and Asia to attract generous tax stimuli supply manufacturers to compensate for some of the costs of production.
Production in Los Angeles Greater fell 5.6 percent in 2024, making it the second less productive year ever, the Film Industry body said. Only 2020, interrupted by the Global Pandemia Covid-19, with no lower filming levels, she said.
Instead, Hollywood Studios and Streamers have addressed countries such as the United Kingdom, which offer generous tax incentives along with world class facilities, access to talented staff and a common language.
The British Film Institute in February said that spending on film and high -level television production increased by nearly a third in the UK to 5.6bn £ 2024, with films such as Wicked made in place.
In 2024, almost two-thirds spent on the production of the UK film were from the five major US studios and the three major American-Netflix transmission platforms, Apple and Amazon.
The UK is not alone, with even higher tax deductions available in countries in parts of Europe. Australia last year increased its tax incentives for foreign movies and television series, which had already attracted films such as Autumn boy AND The kingdom of the planet of monkeys.
California has its own financial offers, including a $ 330 million year’s film and television driving program that Gavin Newsom Governor wants to expand to $ 750 million a year.
