The global film industry appears largely unfazed by U.S. President Donald Trump’s renewed proposal to impose 100% tariffs on films produced overseas, despite the potential economic shock such a policy could trigger.
Major studios and streaming giants continue to film across the globe — from Britain and Hungary to Australia and Canada — suggesting confidence that Trump’s trade threat will remain rhetoric rather than reality.
Muted Reaction Compared to Initial Shock
When Trump first floated the tariff idea in May 2025, it sent ripples through Hollywood. Film producers, financiers, and studios briefly paused international deals, fearing cost spikes and uncertainty. However, this time the industry’s response has been notably muted.
“Other than the initial flurry of ‘Oh, he’s said it again,’ people are not taking it as seriously as they did the first time,” said Lee Stone, a partner at London law firm Lee & Thompson, who worked on Netflix’s Emmy-winning Adolescence.
Trump’s proposal seeks to counter what he calls the “very fast death of the American film industry,” claiming that international tax incentives have pulled jobs and production spending away from the U.S. Yet for many studios, the global production model has become an essential business reality — not a temporary trend.
Global Production Spending Remains Strong
According to new data from ProdPro, Hollywood and streaming companies spent $24.3 billion on productions outside the U.S. over the last 12 months, compared to $16.6 billion within the United States.
Far from slowing, overseas spending remains strong, fueled by attractive tax credits, lower labor costs, and high-quality studio infrastructure.
The United Kingdom has become the biggest international hub, drawing $8.7 billion in film and scripted TV spending — including Star Wars: Starfighter, set for release in 2027. Canada follows closely with $6.4 billion, while Australia, Hungary, Ireland, and Spain account for nearly a quarter of total international production.
COVID-19 and Strikes Accelerated Globalization
Experts say the COVID-19 pandemic and Hollywood labor strikes accelerated the migration of film production abroad.
“Australia became a bit of a production bubble,” explained Kirsten Stevens, a film expert at the University of Melbourne. “While much of the world shut down, productions continued safely in Queensland.”
In Central Europe, countries like Czech Republic and Hungary boosted tax incentives — up to 25% — drawing major films like The Gray Man, All Quiet on the Western Front, and Dune: Part Three.
Hungary’s film commissioner Csaba Kael confirmed that local soundstages are operating at full capacity, signaling little fear that Trump’s tariffs will materialize anytime soon.
Round-the-Clock Production Through Global Collaboration
Modern filmmaking relies on global workflows spanning multiple time zones.
“It’s not uncommon for a high-end film to have work done in Australia, New Zealand, London, and beyond,” said Mike Seymour, an Emmy-nominated visual effects specialist from the University of Sydney. “In some cases, films are worked on literally 24 hours a day.”
This global interdependence makes a unilateral tariff not only difficult to enforce, but also potentially disruptive to Hollywood’s existing production ecosystem.
Industry Pushes for U.S. Tax Incentives Instead
Rather than tariffs, film guilds, unions, and studio executives are lobbying for stronger U.S. tax incentives to make domestic production more competitive.
Actor Jon Voight and several industry groups have called for a federal production tax credit to offset the advantages foreign locations currently enjoy.
A new bipartisan bill — the CREATE Act — aims to extend and expand deductions for U.S.-based film and TV projects, a move many see as a more practical alternative to protectionist tariffs.
“What we really want is a national tax incentive, not trade barriers,” said one unnamed studio executive. “That’s what will bring production home.”
Uncertainty Still Looms Over Potential Tariffs
While many dismiss Trump’s latest comments as political posturing, some remain cautious about the long-term implications if such tariffs were ever enforced.
A visual artist who spoke to Reuters anonymously warned:
“If these tariffs did go into effect, it would be devastating. The ripple effects on jobs and international collaboration would be enormous.”
For now, however, the global film industry continues to thrive, with projects proceeding as scheduled in studios across London, Prague, and Sydney. As long as production incentives abroad remain lucrative, Hollywood’s presence overseas looks unlikely to fade.
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