Topline
President Donald Trump’s threat of a 100% tariff on films produced outside of the United States—though vague in details—likely would have impacted many of this decade’s highest-grossing American-made films, including the “Avatar” franchise and “Barbie,” both of which are among the many blockbusters that filmed in the United Kingdom, New Zealand or elsewhere.
Key Facts
“Avatar: The Way of Water,” which hit theaters in 2022 and is the highest-grossing film of this decade so far with more than $2.3 billion in box office returns, was largely filmed in New Zealand thanks to government grants.
Though “The Way of Water” avoided Trump’s threat of steep tariffs on films produced outside the United States, there are three more “Avatar” movies in the works, including one releasing later this year, that could be impacted if Trump follows through on his tariff threat.
Trump said in a Truth Social post Sunday night he would impose a 100% tariff on films produced abroad because the American movie industry is “DYING a very fast death,” calling the loss of domestic film production to other countries a “national security threat.”
The timeline for Trump’s proposed tariff, and whether he has the authority to impose tariffs on films, remains unclear, and White House spokesperson Kush Desai told the Associated Press on Monday no final decision has been made regarding the tariff.
Which Recent Blockbusters Were Filmed Outside The U.s.?
- “Avatar: The Way of Water” (grossed $2.3 billion): Filmed in New Zealand, produced by director James Cameron’s U.S.-based Lightstorm Entertainment
- “Barbie” (grossed $1.4 billion): Filmed in the United Kingdom, produced by U.S. companies Mattel, LuckyChap Entertainment and British company Heyday Films
- “Deadpool & Wolverine” (grossed $1.3 billion): Filmed in the United Kingdom, produced by U.S. companies Marvel Studios, Maximum Effort and 21 Laps Entertainment
- “Jurassic World Dominion” (grossed $1 billion): Filmed in the United Kingdom, Canada and Malta, produced by U.S. companies Universal Pictures, Amblin Entertainment and The Kennedy/Marshall Company
- “Doctor Strange in the Multiverse of Madness” (grossed $955.8 million): Filmed in the United Kingdom, produced by Marvel Studios
- “A Minecraft Movie” (grossed $873 million): Filmed in New Zealand, produced by U.S.-based Warner Bros. Pictures
- “No Time to Die” (grossed $774.1 million): Filmed in the United Kingdom, produced by U.S. company Metro-Goldwyn-Mayer and British company Eon Productions
- “Thor: Love and Thunder” (grossed $760.9 million): Filmed in Australia, produced by Marvel Studios
- “Wicked” (grossed $753.9 million): Filmed in the United Kingdom, produced by U.S.-based Universal Pictures
- “Dune: Part Two” (grossed $714.6 million): Filmed in Hungary, Italy, Jordan and the United Arab Emirates, produced by U.S. company Legendary Entertainment
Which Upcoming Films Were Produced Outside The U.s.?
Several upcoming 2025 films were shot abroad, though it’s unclear whether films that are already completed would be subject to Trump’s potential tariff. The next film in the “Avatar” franchise, “Avatar: Fire and Ash,” releases in December and was filmed in New Zealand. The next “Mission Impossible” film, “Mission: Impossible – The Final Reckoning,” was produced by U.S.-based Skydance Media and filmed in the United Kingdom, Italy, Malta, South Africa and Norway. The upcoming live-action remake of the animated movie “How to Train Your Dragon” was produced by U.S. company DreamWorks Animation and filmed in Northern Ireland. The upcoming Brad Pitt movie F1 was produced by U.S.-based Warner Bros. Pictures and Apple Original Films, and was filmed at various Formula 1 race tracks across the world, including in the United Kingdom, United Arab Emirates, Hungary, Japan, Italy and Belgium, with additional filming locations in the United States.
Why Is Film Production Down In The U.s.?
Productions in Hollywood and elsewhere in the United States have declined in recent years, largely because of the pandemic, labor strikes and financial incentives offered by locations abroad. In 2024, research firm ProdPro found the number of film and television productions in the United States had declined 40% since 2022, while declining 20% globally. Some countries have passed tax breaks for films in recent years to attract productions, including the United Kingdom, which unveiled a 40% corporate tax relief for film productions in 2024, and an additional tax credit for independent films. Hungary also extended a 30% tax credit in October for an additional six years, while Denmark joined other Nordic countries in establishing a film tax incentive in November.
How Has The Film Industry Reacted To Trump’s Tariff Threat?
New Zealand film producer John Barnett told local outlet The Spinoff: “Not unlike everything else Trump has done, it is totally lacking in logic,” stating much of the plan is unclear. “What is Trump going to do if ‘M3GAN’ comes here and spends $200 million here? Is he going to charge them $200 million? And who’s going to pay it?” Barnett said. “This makes no sense,” an unnamed British producer told Variety, questioning whether the many blockbusters that shoot overseas would need to shoot in the United States now. An unnamed U.S. film company told Deadline the tariff would “destroy the independent sector” because “we won’t be able to make movies for the same budgets, actors won’t get paid the same fees and the list goes on.” Many Hollywood stocks fell Monday after Trump’s announcement, including Netflix, whose stock fell 4%, costing the company $20 billion in market capitalization loss.
Key Background
Trump announced in January he would appoint actors Sylvester Stallone, Mel Gibson and Jon Voight as “special ambassadors” to bring film productions back to Hollywood. Bloomberg reported in April Voight had planned to present Trump with ideas to revive Hollywood productions, including tax credits, infrastructure investments and job training.
Further Reading
Netflix Suffers $20 Billion Loss As Trump Wields 100% Movie Tariffs (Forbes)
