US President Donald Trump’s new threat to impose 100% tariffs on all films made abroad could upend the global film industry and deal a major blow to the already fragile UK sector.
White House leaders first announced the mandate for films made outside the United States in May. He reiterated the issue in September, writing in a social media post that other countries had “stolen” the film production business from the United States.
The UK film industry has already faced multiple challenges in recent years, from box office sales struggling to recover to pre-pandemic levels, to increased competition from streaming platforms, the SAG AFTRA strike and now the threat of film tariffs.
Gurinder Chadha, director of blockbuster films “Bend Like Beckham” and “Bride and Prejudice,” is set to release his new film “Christmas Karma,” based on Charles Dickens’ classic “A Christmas Carol,” this winter. The director told CNBC that it was a “miracle” that she was able to make the film, given the challenges facing the industry.
“I don’t know if tariffs are realistic, but I think we need to consider the message behind them, which is that every country is trying to protect its film industry,” she said.
Audience members watch movies using 3D glasses.
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Still, the UK film and TV sector is a bright spot for the economy, contributing billions of pounds through production costs, which reached 5.6 billion pounds ($7.5 billion) last year, according to the British Film Institute (BFI).
“We know that our creative industries are worth around £126 billion a year. People often think of film and TV as something that makes them feel good and entertains them, but in reality they generate thousands of jobs and huge inward investment across the UK,” said Caroline Dinenage, Member of Parliament and Chair of the UK Committee for Culture, Media and Sport.
dependence on the US
From Pinewood to Shepparton, British studios rely heavily on US partnerships. Last year, 65% of total UK film production spending came from US studios and streaming platforms, according to a BFI report.
According to director Howard Berry, without this American contribution it would be even more difficult to make British films.
“We’re very dependent on US investment in the UK to make films. We have to wait for the US to say they’re going to make a film and then we scramble to make it happen,” he said.
“We’re not very good at making Britain say, ‘We’re going to make British films.’ So if we don’t have that money anymore, we’re stuck. We don’t have that big of an investment to make our own films.”
Modern filmmaking is a collaborative process, with scriptwriting, filming, post-production, and music development often occurring across different countries. This makes it difficult to enforce tariffs, according to Vue CEO Tim Richards.
“Because of the complexity, there are actually other ways to accomplish the same goal, like tax credits, which Gavin Newsom is proposing as well, so I think there are other ways to accomplish the same goal without impacting the industry,” Richards said, referring to California Governor Gavin Newsom.
This summer, Newsom increased California’s total film and television tax credit to $750 million, nearly double the previous cap, to encourage more productions to film in Los Angeles.
“How do we define what is actually affected by these tariffs? That’s what everyone is really looking at,” he added.
Gigi Kamasa, CEO of UK-based theatrical distribution company True Brit Entertainment, said US film tariffs could force Britain to increase cooperation with other countries.
“Many of the films we have produced over the years and produced in the UK often go to Europe and Asia, and I think we will be looking further outside of European territory for co-production opportunities to strengthen our funding opportunities.”
For now, the cameras continue to roll, but many in the industry are hoping the UK government will take action.
When Trump first called for 100% tariffs on films, a British government spokesperson told local media that it was not in the national interest to provide “live commentary” on trade issues with the United States, adding that Britain’s film industry was “world class.”
“I think it’s a very important thing for our prime minister to talk to the U.S. government, and it definitely should be at the center of any future trade talks,” Dinenage said.
