Despite renewed warnings from US President Donald Trump about imposing heavy tariffs on films made outside the United States, international film production continues at full speed across the world.
Major productions like Star Wars: Starfighter are actively shooting in the UK, studios in Hungary are fully booked, and Australian post-production houses are busy. Trump has once again proposed a 100% tariff on films produced overseas in an attempt to protect American film jobs an idea he first floated in May.
When the proposal was initially announced, it caused panic in Hollywood, delaying production plans and funding deals. But this time, the reaction has been much calmer.
“People are not as alarmed as before,” said Lee Stone, a partner at UK law firm Lee & Thompson. He surprisingly noted a pause like the first time hasn’t happened.
Hollywood Still Prefers Global Filming Locations
Recent data from industry tracker ProdPro shows that although global production spending is down 15% due to fewer big-budget films and TV series, there is no sign that studios are shifting back to filming only in the US.
- In the past 12 months, US productions spent $16.6 billion domestically.
- Meanwhile, $24.3 billion was spent on international film and TV projects.
- The UK led with $8.7 billion, followed by Canada with $6.4 billion.
- Australia, Ireland, Hungary, and Spain together made up nearly 25% of all global production spending.
Studios continue filming abroad due to attractive tax rebates, lower labor costs, and advanced filming facilities.
Pandemic Boosted Global Shift
COVID-19 and the Hollywood writers’ and actors’ strikes pushed more studios to film overseas.
Australia, especially Queensland, became a safe production zone while other countries shut down.
More countries also increased their incentives:
- Prague raised tax rebates from 20% to 25%.
- The UK offers up to 25.5% tax relief, with higher support for animation and independent films.
Hungary, the Czech Republic, and other European nations have hosted large titles like The Gray Man, All Quiet on the Western Front, and Dune: Part Three.
Why Global Production Works Better for Studios
Studios have found that splitting work across different countries speeds up and reduces the cost of production.
Visual effects expert Mike Seymour said films can be worked on “24 hours a day” because of different time zones across London, New Zealand, and Australia.
Industry Pushes Back Wants Tax Incentives, Not Tariffs
For now, filmmakers are continuing projects normally. Industry experts say any disruption could delay schedules and make actors or locations unavailable.
American film unions and actors like Jon Voight are urging Trump to focus instead on federal tax incentives to make US filmmaking more competitive. A new bipartisan bill, the CREATE Act, aims to extend tax deductions for domestic productions.
If Tariffs Are Enforced, Global Impact Could Be Massive
While many are unsure if Trump will follow through on his plan, international filmmakers fear economic consequences.
“If it actually happens, it would be devastating,” said one visual artist who asked to remain anonymous.
