The international industry is reacting swiftly to the news US President Donald Trump is considering imposing 100% tariffs on all films produced
The international industry is reacting swiftly to the news US President Donald Trump is considering imposing 100% tariffs on all films produced outside of the US, “in foreign lands”.
“Making it more difficult to make films in the UK is not in the interests of American businesses,” said Caroline Dinenage, Conservative member of parliament and chair of the UK parliament’s cross-party culture media and sport committee.
“Their investment in facilities and talent in the UK, based on US-owned IP, is showing fantastic returns on both sides of the Atlantic. Ministers must urgently prioritise this as part of the trade negotiations currently underway.
”At the same time, the Government’s forthcoming Creative Industries Sector Plan needs to meet the challenge we set down of incentivising inward investment while also growing our domestic sector so British film and high-end TV can thrive.”
Philippa Childs, head of Bectu ,the union of freelance workers in the UK’s media and entertainment industries, said: “The UK government must move swiftly to defend this vital sector, and support the freelancers who power it, as a matter of imperative national economic interest.
“The UK is a world leader in film and TV production, employing thousands of talented workers, and this is a key growth sector in the government’s industrial strategy.
“These tariffs, coming after Covid and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering and will be really worrying news for tens of thousands of skilled freelancers who make films in the UK.
According to the Guardian, Australia’s home affairs minister Tony Burke said he had spoken to the head of the government body Screen Australia about the proposed tariffs. “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” he said in a statement.
Screen Producers Australia (SPA) has posted a statement that reads: “At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented,” said SPA CEO Matthew Deaner. “There are many unknowns for our industry, but until we know more, there’s no doubt it will send shockwaves worldwide.
“For the Australian industry, it reinforces the need for the Government to focus immediately and swiftly on building a resilient local industry that can withstand global shocks like this.
“As we get set for our annual SCREEN FOREVER conference, set to start tomorrow, we’re certain today’s announcement will be the catalyst for many, many conversations between local and international industry executives and screen professionals.
“SPA will continue to monitor developments and await the Executive Order, which should provide further information on this,” said Deaner.
New Zealand prime minister Christopher Luxon told a news conference the government was awaiting further detail of the proposed tariffs. “We’ll have to see the detail of what actually ultimately emerges. But we’ll be obviously a great advocate, great champion of that sector in that industry,” he said.
UK sales agents
Leading London-based sales agents began to digest the news on the eve of Cannes – and cautioned against panic.
“It sounds potentially disastrous for the international film industry,” said one. “America is our biggest market and one which leads the rest of the world. It’s unclear how the proposed tariffs would be implemented but if they apply to foreign independent productions to be distributed in the US the implications for our industry could be seismic.
”I do note, however, that we have absolutely no detail on this and would caution against panic as an immediate reaction to the news.”
“What a bombshell on the eve of Cannes,” said another. “It might never get into effect, but just the possibility of such a tariff will create unnecessary uncertainty towards the US market which was just starting to show positive signs of recovery after the strikes
“It could have the double deterring effect of affecting production finance of films that count on the US sale down the line as crucial collateral for financiers, and making import of foreign language films prohibitive.
“One can wonder how it affects global streamers like Netflix, whose business model is to produce locally, and exploit globally including in the core US domestic market,” they continued. “Would a show like Squid Game be taxed in the US for American subscribers to watch? or would it be taken off the service all together in America to avoid the tariff?”
More to follow.
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