President Trump’s recent announcement of a proposed 100% tariff on foreign-made films has sent shockwaves through the global film industry. As European service providers and production companies grapple with the potential fallout, Massif Network is committed to helping our partners navigate this uncertain terrain.
Understanding the Proposal
On May 4, 2025, Trump declared on his Truth Social account that the U.S. film industry is “DYING a very fast death,” blaming international incentives that lure productions abroad. He characterised foreign films as “messaging and propaganda” and a “National Security threat.”
He directed the Department of Commerce and U.S. Trade Representative to “immediately begin the process of instituting a 100% Tariff” on all foreign-produced films. Commerce Secretary Howard Lutnick replied simply, “We’re on it”.
However, by May 5, the White House clarified that “no final decisions” had been made and that “all options” were being reviewed. This suggests there may still be time for industry input and policy refinement.
The Global Film Ecosystem at Risk
The implications are far-reaching. The average top-grossing film today is shot in 1.6 countries, reflecting the deeply international nature of modern filmmaking.
In the UK, film and high-end TV production spend hit £5.6 billion in 2024, with inward investment and co-productions accounting for 86% of that figure. Hollywood’s reliance on UK locations is significant—nearly 24% of U.S. studio films filmed at least partially in the UK in 2019.
Major franchises like Harry Potter, Mission Impossible, and Barbie have relied on UK production infrastructure. The latter alone contributed over £80 million ($106 million) to the UK economy.
Challenges for European Production Services
Economic Impact
Industry leaders are sounding the alarm. Philippa Childs of the UK media union Bectu warned that these tariffs “could deliver a knock-out blow” to a sector still recovering from the pandemic and recent production slowdowns. As of October 2024, the UK film industry was worth £1.36 billion and supported over 195,000 jobs.
Employment Concerns
Kirsty Bell, CEO of UK-based Goldfinch, emphasised that without U.S. projects, freelancers could be left jobless—a sentiment echoed by film professionals across Europe.
Implementation Uncertainty
Key questions remain unanswered:
- How would tariffs apply to multi-country productions?
- Would they affect films already underway?
- Would costs be calculated based on budgets or revenue?
- What about global streaming releases?
As one London producer asked in Variety, “Will costs simply double?”
Strategic Opportunities: Turning Challenges into Advantage
1. Reimagine Co-Production Models
European companies can position themselves as co-producers, not just service vendors. In 2024, UK co-productions accounted for £79.8 million—a smaller slice, but potentially more important under new trade restrictions.
2. Diversify Beyond U.S. Dependence
In 2024, UK domestic productions grew by 24% year-on-year, reaching £185.8 million. Markets like India also present opportunities; Indian films earned $100 million at the U.S. box office in recent years.
3. Become Creative Partners, Not Just Providers
Stephen Weizenecker, an industry attorney, told Reuters that even modest tariffs could negate overseas production incentives. European companies should integrate earlier in development to offer creative as well as logistical value.
4. Offer Tariff-Mitigation Expertise
Film production today resembles auto manufacturing—global in scope. With complex pipelines involving post-production, VFX, and audio across continents, the need for expert production structuring will increase.
How Massif Network Is Responding
At Massif Network, we’re adapting fast:
Enhanced Location Planning
Our AI-powered scouting platform now helps productions evaluate tariff implications across borders—making smarter location choices faster.
Co-Production Matchmaking
We’re connecting U.S. studios with European co-production partners to foster creative, tariff-resilient alliances.
Legal and Financial Advisory
We’re assembling expert guidance on structuring productions for compliance and efficiency in the face of new tariffs.
Production Strategy Consulting
Our local experts are your production consultants and help assess what might qualify as a “foreign film” under emerging policies and recommend mitigation strategies.
Moving Forward Together
Though the tariff proposal introduces uncertainty, the details remain in flux. Trump has stated he will “meet with the industry” to ensure it is “happy with it.”
Industry voices are mobilising. California Governor Gavin Newsom reaffirmed support for the state’s film sector. Australian Arts Minister Tony Burke voiced unwavering support for Australia’s industry.
The global film community has always been resilient. At Massif Network, we believe that with smart strategy and deep collaboration, European production can not only endure but thrive.
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