The recent reannouncement by U.S. President Donald Trump of 100% tariffs on films produced outside the United States could have serious consequences for the UK film industry, which relies heavily on American investment and collaboration. Industry experts warn that these measures could disrupt the sector’s competitive edge and undermine the international partnerships that have made Britain a global hub for film and high-end TV production.

Mandy Girder, Partner said:

Donald Trump first announced 100% tariffs on films produced outside the United States back in May. Three months on he has brought film tariffs up once more, which if enacted would significantly harm the UK’s film industry.” She added: “American film companies use UK firms for post-production, visual effects, and support services, and the British firms providing this rely heavily on consistent international investment from the US. As before, it is unclear if these services would get caught by the tariffs, or if they are if they will be tapered or hit by the full 100%.

The UK’s reliance on inward investment is significant. In 2024, total spend on film and high-end TV production reached £5.6 billion, of which £4.8 billion came from international investment and co-productions. Tax reliefs have also played a crucial role, generating £13.48 billion in Gross Value Added between 2017 and 2019. For UK businesses and investors, this environment has historically offered strong returns, but the potential tariffs create uncertainty over future cash flows and investment decisions.

Mandy  highlighted the longer-term risks:

The tariffs would have long-term consequences for skills development and innovation in the UK film industry. The film industries in both countries are still recovering from the pandemic, the anxiety caused by Donald Trump’s previous film tariff announcement, making this is a further blow for the sector.

The UK is a hub for film and high-end TV production due to its skilled workforce, competitive tax reliefs, and its production model. Cross border collaborations have given rise to some the best creativity we have seen on our screens over the years, and tariffs would jeopardise this.

Uncertainty over the scope and implementation of tariffs affects not just studios but also ancillary service providers such as VFX houses, post-production firms, freelancers, and related businesses. Disruption to contracts and project pipelines could have knock-on effects on skills retention and long-term industry investment.

For entrepreneurs and high-net-worth individuals with exposure to the sector, the situation presents both risks and opportunities. On the one hand, tariffs could increase costs, create supply chain uncertainty, and dampen investment confidence. On the other, they may prompt government responses in the form of enhanced tax incentives, support schemes, or other protective measures. Those engaged in the sector will need to monitor policy developments closely, review contractual and investment exposures, and consider diversification or contingency planning to mitigate risk.

Mandy concludes:

The reality is that we don’t know what this means for both UK film industry or those using ancillary services in the UK. The Government has always indicated their support of British Film and TV, but more will need to be done to help businesses and freelancers as they once again, wait for clarification and confirmation from Donald Trump.

While the proposed tariffs threaten to unsettle the sector, the UK’s combination of skilled labour, strong tax reliefs, and established global partnerships continues to make it an attractive location for production. Business leaders who act early and strategically may turn uncertainty into opportunity.

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