President Trump's desire to “make Hollywood Grand again” by brandishing his favorite economic weapon – prices – sent a thrill in the British film industry.
British producers, camera workers, costumes and other filming teams woke up on Monday on Mr. Trump's message that he wanted to impose 100% prices on films made in “foreign lands”. This threat is particularly alarming in Great Britain, where Hollywood blockbusters are an essential element of the industry.
“He was completely out of blue,” said Philippa Childs, the head of Bectu, the British union for creative arts workers. “It's quite frightening.”
Last year, almost 90% of 5.6 billion pounds, or 7.8 billion dollars, spent on movies and high-end television production in Great Britain came from abroad, mainly in the United States, as the next “Jurassic World Rebirth” and “The Fantastic Four: First Steps”. The largest and most estimated studios in Great Britain are home to streaming giants like Netflix, Disney + and Amazon Prime. For decades, the productions have been attracted to Great Britain by its generous tax alternatives but also its experienced workforce, which has been successful in Hollywood since “Star Wars” in the 1970s.
So far, Mr. Trump has not followed this threat, and it is not clear how he would realize it. But British industry is still recovering from the disturbances caused by the coronavirus pandemic, then the strikes of the actors and screenwriters of 2023 in the United States, and the concern is that the uncertainty concerning the prices could eliminate this progress.
“The studios around London really fill up, and people get to work,” said Ms. Childs. “Our fear would be that these studios suddenly become empty if it should become a reality.”
The members of Bectu still live with the memories of the strikes, said Ms. Childs. Eighty percent of the members interviewed at the time at the time that their use had been affected, three-quarters did not work.
Marcus Ryder, director general of the cinematographic and television charitable organization, who supports industry workers with their mental health and finances, is preparing for an influx of assistance requests.
“Uncertainty is really without power,” he said. People “have no idea what the prices mean or how to react to them”. It is “very destabilizing,” he added.
Ryder said there was a fear among companies and workers that their industry would be decimated if people feared that they could not pay their bills, left their jobs. The support that was provided during the pandemic and strikes, such as cash subsidies, could not be provided in the long term if prices were applied.
“Even a short-term price could have a long-term devastating effect on the labor market,” he said.
Mr. Trump's suggestions for prices are “concern,” said Adrian Wootton, director general of the British Film Commission, which helps attract productions to Great Britain. He said his organization would meet the government and other industry figures to discuss his concerns.
The British government is “active discussions with the top of the US administration” about these potential prices and works to establish what could be proposed, said Chris Bryant, Minister of the Department of Culture on Wednesday, said legislators in Parliament. “This is a very fluid situation, and we will continue to adopt a calm and regular approach.”
Mr. Bryant added that many companies concerned had set out. One of the first was Pinewood Group, which has the big studio famous for the shooting of Bond films.
At the same time, Great Britain and the United States are would have been close to accepting a pact This would facilitate part of the impact of recent increases in American prices.
Many commercial experts wonder how the prices on films could be applied. The main cinematographic productions are increasingly international, with actors and the team from different countries and with different aspects of cinema, such as filming, postproduction, visual effects and distribution, taking place in different places. To determine what exactly a “foreign” film is and how to impose prices on the services would be complex.
“I don't think it could be done,” said David Henig, a sales expert in London. Instead, it is more likely that US tax reductions would increase, he said. “Obviously, this makes it a threat to the United Kingdom and many other countries that have distributed tax credits to make films,” he added.
Governor Gavin Newsom from California countered on Monday the suggestion of Mr. Trump's prices with his own proposal: a federal tax credit of $ 7.5 billion. It would be the largest government grant program for industry in the United States, and the first of its kind at the federal level.
Even without prices, higher tax incentives in the United States would have “inevitably” an impact on British industry, said Ms. Childs de Bectu.
To a certain extent, increasing dependence on American productions is a challenge for British industry and its workers. Films like “Wicked” and “Mission: Impossible-Dead Reckoning” and television programs such as the spin-off “Game of Thrones” “House of the Dragon” were filmed mainly in the south-east of England. The British government has increased tax reductions for small productions in order to strengthen the independent film industry in Great Britain.
These tax credits will help, Ms. Childs said: “But I don't think it will fill the emptiness of American investment.”
