Cliff Notes
- Film tariffs to be part of UK-US trade deal
- Trump announces 100% tariffs on foreign films
- Little information given causing panic in entertainment industry
Film tariffs to be part of UK-US trade deal As President Trump causes more chaos
What Happened
Donald Trump has announced he will hit foreign-made movies with 100% tariffs sending shockwaves through the entertainment industry. Trump says the US film industry is dying as filmmakers have been leaving Hollywood for cheaper destinations such as Canada and the UK.
It’s unclear how Trump will define what a ‘foreign movie’ is – is it who finances it or who writes it? Is it the location where it’s filmed? There’s no clarity on whether the tariff would apply to American production companies producing films abroad or whether it would apply to movies made for streaming sites.
What Comes Next
The UK government said the current trade negotiations between London and Washington were ongoing and it was taking a “calm and steady approach” to the talks in hopes that it can “ease pressure on UK businesses.”
The UK film sector employs more than 195,000 people and is worth £1.36 billion, warning that freelancers could risk losing work if US productions were pulled
Much of the details of the new tariff, announced overnight, have yet to be confirmed.
Voices From The Crowd
Shadow culture secretary Stuart Andrew said Labour must “get a grip” to secure a trade deal with the US and “protect the UK film industry, otherwise we risk seeing long-term damage to a sector that is a global success”.
Speaking on BBC Radio 4’s Today programme on Monday, Tim Richards, CEO and founder of Vue Entertainment, said: “The devil will be in the details and we need to parcel through exactly what [Trump] means.
Reaction From The Media
The reaction to the film tariffs is as expected – fear. There has been no clarity as to how the film tariffs would be applied, who they will affect and whether it will actually benefit Hollywood. The UK media threats over how it will impact the UK film industry.
- The Guardian, The Standard, ITV and Sky News are among the media leading with the reactions from UK unions who say the film tariffs could have a devastating effect on UK film jobs.
- Beyond the UK, there’s reaction from the New Zealand and Australian film industries – which would also be impacted. Reuters says NZ and Australia have pledged to support their industries,
- American reaction: The Hollywood Reporter questions what Trump is really up to, Bloomberg reports shares in companies like Netflix and Disney dropped after the announcement whilst the LA Times says the announcement has caused chaos and confusion amongst Hollywood executives.