Donald Trump says he will talk with Hollywood executives, after an earlier announcement that he would hit films made in foreign countries with 100% tariffs sent shockwaves through the industry.
The US president said on Sunday he was authorising the commerce department to start the process to impose the levy because America’s film industry was dying “a very fast death”.
But he appeared to soften his stance later on Monday, telling reporters at the White House he was going to “meet with the industry” to “make sure they’re happy” with his proposal.
For years, filmmakers have been leaving Hollywood for destinations including the UK and Canada to lower costs.
One non-US union said the tariff plan would be a “knock-out blow” to the international industry.
Trump said on his Truth Social platform: “It is, in addition to everything else, messaging and propaganda!”
“WE WANT MOVIES MADE IN AMERICA, AGAIN!”
US Commerce Secretary Howard Lutnick responded to the announcement, saying “We’re on it”.
But the details are unclear. Trump’s statement did not say whether the tariff would apply to American production companies producing films abroad.
White House spokesman Kush Desai told the BBC: “Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
Several recent major films produced by US studios were shot outside of America, including Deadpool & Wolverine, Wicked and Gladiator II.
It was also unclear if the tariffs would apply to films on streaming services, such as Netflix, as well as those shown at cinemas, or how they would be calculated.
The founder of European cinema chain Vue, Timothy Richards, questioned how Trump would define a US film.
Speaking to BBC Radio 4’s Today programme, he said: “Is it where the money comes from? The script, the director, the talent, where it was shot?”
Mr Richards said the cost of filming in southern California had grown significantly over the last few decades, prompting filmmakers to move production to locations including the UK, which have increasingly offered tax incentives and lower costs.
“But it’s not just the actual financing itself,” he added.
“One of the reasons the UK has done so well is that we have some of the most highly experienced and skilled film and production crews in the world.
“The devil will be in the details.”
Meanwhile, UK media union Bectu warned the tariffs could “deal a knock-out blow” to the industry and its tens of thousands of freelancers, as it recovered from the pandemic and a “recent slowdown”.
Union chief Philippa Childs told the BBC: “The government must move swiftly to defend this vital sector, and support the freelancers who power it, as a matter of essential national economic interest.”
The UK government said it was “absolutely committed” to ensuring its film sector continued to thrive and create jobs, and would set out plans to do so in its upcoming Creative Industries Sector Plan.
It added that talks on an economic deal with the US were ongoing, but a “running commentary” on progress was “not in the national interest”.
The British Film Institute said it was working closely with the government and industry partners in the UK and the US, “while we understand the detail of the proposal”.
“We want to keep collaboration at the heart of our sectors, so we remain a constructive partner to our friends in the US and internationally,” it said.
The US remains a major film production hub globally despite challenges, according to movie industry research firm ProdPro.
Its most recent annual report shows the country saw $14.54bn (£10.94bn) of production spending last year. Although that was down by 26% since 2022.
And NPR Radio film critic Eric Deggans warned that the tariffs, should they be introduced, could further harm the industry.
Other countries may respond by placing tariffs on American films, he told the BBC, making it “harder for these films to make profits overseas”.
“It may create a situation where the tariffs in America are causing more harm than good,” he added.
The Motion Picture Association, which represents the five major US film studios, declined to comment when contacted by the BBC.
Countries that have attracted an increase in spending since 2022 include Australia, New Zealand, Canada and the UK, according to ProdPro.
Following Trump’s remarks, Australia’s home affairs minister Tony Burke said: “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”
Industry body Screen Producers Australia said that while there were “many unknowns” about the plan, there was “no doubt it will send shock waves worldwide”.
New Zealand’s Prime Minister Christopher Luxon also said his government was awaiting further details of the proposed tariffs.
“But we’ll be obviously a great advocate, great champion of that sector and that industry,” he told a news conference.
Ahead of his inauguration, Trump appointed three film stars – Jon Voight, Mel Gibson and Sylvester Stallone – to be special ambassadors tasked with promoting business opportunities in Hollywood, which he described as a “great but very troubled place”.
Trump wrote at the time: “They will serve as Special Envoys to me for the purpose of bringing Hollywood, which has lost much business over the last four years to Foreign Countries, BACK – BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”
Since returning to the White House in January, Trump has imposed tariffs on countries around the world.
He argues tariffs – which are taxes charged on goods bought from other countries – will boost US manufacturers and protect jobs.
But the global economy has been thrown into chaos as a result, and prices on goods around the world are expected to rise.
Even before this most recent announcement, the US movie industry had been impacted by the fallout from Trump’s trade policies.
In April, China said it was reducing its quota of American films allowed into the country.
“The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films,” the China Film Administration said.
“We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”
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