ieExplains: How would a 100% tariff on foreign-made films impact Ireland's economy?
Wednesday. (L to R) Thing, Jenna Ortega as Wednesday Addams in episode 104 of Wednesday. Cr. Courtesy of Netflix © 2022
Ireland has once again found itself in the crosshairs of US President Donald Trump's punitive tariff policies, with fresh concerns emerging around proposed levies on Ireland's growing film industry.
In a bid to combat what he has called a "dying" American film industry, Mr Trump has threatened levies of 100% on films made outside of the US, but did not elaborate on how tariffs might be applied or who specifically they would target.
Posting on social media this week, Mr Trump said: "The movie industry in America is dying a very fast death. Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood and many other areas within the USA are being devastated.”
Most of this year's Oscar best picture nominees were filmed outside the U.S. and a survey among studio executives over their preferred production locations for 2025 to 2026 by ProdPro showed that the top five choices were all overseas.
Mr Trump added that he had authorised the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff "on any and all Movies coming into our Country that are produced in Foreign Lands."
In the past few years, Ireland has become a hot spot for US film companies due to its generous tax incentives, skilled workforce and numerous studios. So, how will a 100% levy on foreign films impact Ireland's growing sector?
According to Screen Ireland, the gross value added of Ireland's audiovisual industry, which includes film, television and animation, is more than €1bn. In 2024, the total production spend generated by the Irish screen industry was valued at over €430m, reflecting a 33% rise on 2023 figures.
In terms of employment, the industry supports a total of 15,899 full-time equivalent jobs.
The sector generates €890m in labour compensation, €595m of which is direct labour compensation, making it a significant contributor to local wages and economic activity.
Ireland also has several major film production facilities, including Ardmore Studios, Troy Studios and Ashford Studios, which, between them, have helped produce Braveheart, King Arthur, Wednesday, Wayfinders, Vikings, and Rob Lowe's The Floor.
In addition, Tourism Ireland’s research from 2024 revealed that 26% of tourists coming to Ireland indicated that film, television and travel shows were a source of travel inspiration.
Ireland has become an increasingly popular location for foreign film production, largely due to the Section 481 tax credit, which is a credit incentivising film and TV, animation and creative documentary production in Ireland, administered by Ireland’s Department of Culture and the Revenue Commissioners.
The rate of tax credit is worth up to 32% of eligible Irish expenditure, with no annual cap or limit on the funding of the programme, enticing many US producers who have criticised the rising cost of producing films and TV series in Hollywood.
Speaking earlier this year, actor and filmmaker Rob Lowe, who spent time in Ireland filming his game show The Floor, said in a podcast: "It’s cheaper to bring one hundred American people to Ireland than to walk across the lot at Fox, past the sound stages, and do it there."
If President Trump were to press ahead with a 100% tariff on films made outside the US, it could impact thousands of jobs across the Irish film and television industry, as US companies will likely be deterred from travelling abroad.
It would also undercut the appeal of Ireland's generous Section 481 tax credit, which could slow investment and have knock-on effects for Ireland's tourism industry, which has largely benefited from Ireland's increased exposure in the US.
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