New tariffs shake Hollywood firms making films abroad

: World Tribune; 05 May 2025; Hits: 9

by WorldTribune Staff, May 5, 2025 Real World News

This year’s highest-grossing film thus far, “A Minecraft Movie”, has raked in over $400 million at the domestic box office and could pass the coveted $1 billion mark worldwide.

It was made by an American studio but outside the U.S.

The movie was made by Warner Bros. Pictures in collaboration with Legendary Entertainment, Vertigo Entertainment, On The Roam, and Mojang Studios.

Some of this summer’s biggest productions including “Mission: Impossible—The Final Reckoning” and “Jurassic World Rebirth” were made primarily or entirely outside the U.S.

“Hollywood production companies often make films overseas, in countries like the United Kingdom and Canada, because foreign tax incentives essentially act as a subsidy on every dollar they spend to hire cast and crews, rent stages and do visual-effects work. In addition, personnel costs are often lower outside the U.S.,” the Wall Street Journal reported on Monday.

“London in particular has become a thriving hub for Hollywood productions, because of its tax incentives, extensive infrastructure including large soundstages, and English-speaking crews. Disney’s Marvel Studios is shooting a pair of coming Avengers sequels there,” the report said.

President Donald Trump announced on Sunday that he has ordered administration officials to implement a 100% tariff on foreign-made films imported to the U.S.

Trump wrote in a post to Truth Social:

The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!

Trump in January appointed actors Jon Voight, Mel Gibson, and Sylvester Stallone as his “special ambassadors” to Hollywood. He said they would help bring back Hollywood business lost to foreign countries.

“These three very talented people will be my eyes and ears, and I will get done what they suggest,” the president said.

The total amount of money spent last year on film and television productions in the U.S. with budgets of more than $40 million fell 26% from two years earlier, according to research firm ProdPro. It rose during that period in the UK and Canada, though neither market has yet caught up to the U.S.

“The prospect of tariffs on movies sent shudders from Hollywood to Wall Street,” the Journal’s report said. “Films are the source of billions of dollars in U.S. exports. While many Hollywood workers and studios have called for ways to make shooting films in the U.S. more economical, tariffs could add uncertainty to a business already fighting to stay relevant against digital competitors.”

Shares in Netflix, Disney, Warner Bros. Discovery and Paramount fell 2% or more in morning trading on Monday before recovering slightly.

“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,” White House spokesman Kush Desai said.