Movies

Will Trump’s Tariff Delay Marvel’s Avengers: Doomsday Production?

BBG News

I find myself contemplating a critical decision as a follower of The Walt Disney Company: should we temporarily halt the production of Avengers: Doomsday, the eagerly awaited Marvel installment, which is currently being filmed entirely within the United Kingdom? This predicament arises following President Donald Trump’s unexpected declaration of a 100% tariff on all films produced abroad. This bold protectionist measure, aimed at reshaping the global entertainment industry, could potentially have dire consequences for projects like Avengers: Doomsday if we choose to continue production under these new conditions.

Donald Trump announced plans to impose a complete customs duty on any movies generated beyond U.S. borders that are imported into the nation.

Hollywood projects currently shooting overseas include:

• ‘Avengers: Doomsday’
• ‘The Odyssey’
• ‘Avatar 4’
• ‘Supergirl’

— Culture Crave 🍿 (@CultureCrave) May 5, 2025

Over the weekend, President Trump announced that he has given permission to the Department of Commerce and the U.S. Trade Representative to start the procedure for imposing fresh tariffs. He justified this move by pointing out the exodus of American film production to other countries as an economic catastrophe and a threat to national security. In his words, “Hollywood, along with several other sectors within the U.S., is being severely affected.” His aim is to bring movie-making back to America once more.

On X, Commerce Secretary Howard Lutnick stated, “We’re taking care of it,” indicating that the administration is actively working on its execution. However, specific guidelines have not been established as of yet.

This unexpected policy announcement has left Hollywood studios in a state of confusion, as it’s undecided whether these potential tariffs will affect all foreign content, including American films shot overseas like “Avengers: Doomsday,” or just those produced by foreign entities. Furthermore, the method used to calculate these tariffs is shrouded in uncertainty; they might be imposed on production expenses, box office earnings, licensing agreements, or some other measurement.

Mike Pence appears to harbor some discontent towards these tariffs, as they represent the essence of America First – an idea that seems to elude his comprehension.

— Howard Lutnick (@howardlutnicks7) April 4, 2025

Avengers: Doomsday—A $300 Million Gamble?

If the recently proposed tariffs are applied either retroactively or moving forward to the upcoming movie “Avengers: Doomsday,” which Disney has filmed at Pinewood Studios in the UK and has a budget exceeding $300 million, it might result in substantial cost increases for Disney. This film is Marvel’s anticipated comeback project following a series of less successful releases.

I find myself in a predicament where, unless there’s a change in the administration’s stance on exemptions or clarification of definitions, our entire operation could be hit with a 100% import fee if it continues to be based in the UK. This has sparked much discussion about the possibility that Disney may need to put the production on hold, at least temporarily, until we can achieve legal clarity.

On social media platforms, enthusiasts have begun expressing their thoughts. One user posted, “I guess we’re going to spend $40 to watch the Avengers now?” Another user noted, “It seems Trump is not fully aware that studios like Disney and Marvel are the ones filming abroad. This tariff actually harms them.

As a film enthusiast, I woke up on Monday morning to find a policy announcement causing quite a stir in the market. Shares of heavyweights like Disney, Paramount Global, Warner Bros. Discovery, and Amazon took a dip, hinting at Wall Street’s growing anxiety about the future of global content distribution networks. With 2026’s box office projections under scrutiny, especially for franchises with international production hubs, analysts are now adjusting their forecasts. However, companies with more diverse portfolios, such as Comcast and Disney, appear to be coping better in the midst of this storm, according to current reports. While I’m not a financial advisor, it seems that these firms might be holding up stronger than Netflix and Paramount due to their ventures beyond movie production.

In response to Trump’s recent action, governments in Australia and New Zealand have pledged to strengthen their film industries swiftly. The Motion Picture Association is still silent on the matter, but top executives from leading studios are said to be engaged in intense discussions to evaluate potential risks.

Critics of the policy refer to it as a heavy-handed solution for a complex matter. It’s acknowledged that foreign tax credits have been draining production from Hollywood. However, instead of imposing punitive tariffs, many believe the solution should be more about fostering competitive domestic incentives and updating union agreements to make filming domestically less costly. Opponents of the move argue that it might spark a resurgence in U.S.-based filmmaking. Trump has appointed three Hollywood veterans known for their patriotism—Jon Voight, Sylvester Stallone, and Mel Gibson—in January to help drive this entertainment revival. Interestingly, Gibson is planning to produce a significant movie in Italy this year, which suggests that the tariffs might not be as detrimental as some fear.

Of course, for Disney and Marvel Studios, the pressing matter isn’t about abstract ideas but rather money: Is it financially feasible for them to keep producing a $300 million film in the UK when there could be a 100% tariff upon re-entry into their domestic market?

The Bottom Line: Disney Must Decide… and Soon.

Before the administration provides more specific guidelines, the production of “Avengers: Doomsday” remains in a pricey standstill. Disney officials might need to temporarily halt or shift the production to sidestep potential hundreds of millions in unforeseen charges. They could also risk attempting a workaround or legal action. If production costs are subjected to a 100% tariff for expenses made abroad, “Avengers: Doomsday” may face an additional expense increase of hundreds of millions of dollars. Given that the film was already expected to set new records for cost, such a hike seems unsustainable. Thus, “Avengers: Doomsday” might be postponed indefinitely until the Trump Administration provides further instructions.

Regardless, time is running out – and this situation could have significant repercussions for Disney’s international planning, Marvel’s upcoming projects, and the American entertainment sector as a whole, potentially leading to far-reaching changes.

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2025-05-05 18:00

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