Trump's tariff threat shakes Hollywood and global film markets

Trump declared on Sunday that he would "immediately begin the process of imposing a 100% tariff" on films produced abroad. He justified this decision with the need to protect the national film industry, which he believes is experiencing a "very fast death" due to foreign competition.

Stock prices for Netflix, Disney, Warner Bros., Discovery, Paramount, and Comcast plummeted in reaction to Trump's declarations, who decided to "save Hollywood" by imposing tariffs on foreign films, according to CNBC.

The British film industry estimates that the introduction of tariffs would be a knockout blow, while Australia and New Zealand want to support their domestic production. Meanwhile, the stock prices of American film studios continued to fall, according to American and British media earlier on Monday.

It remains unclear which productions would be subjected to Trump's tariffs and who would ultimately pay these duties. Many Hollywood films are shot abroad, often in several countries, due to locations, production costs, production bases, or tax incentives.

The British newspaper "The Guardian" reports that, according to representatives of the local film industry and trade unions, Trump's tariffs will deliver a knockout blow to the sector.

Many American films are produced in British studios; recent hits include "Barbie," the "Mission Impossible" series, and films from the "Star Wars" cycle.

A prominent figure in British cinema told "The Guardian" that if Trump's tariffs go into effect, they could "wipe out" the British film industry and its workers. They added that if they also include television formats, the industry might as well pack up and go home.

James Firth from the parliamentary culture and media committee assessed that tariffs on British film production would destroy jobs in the United Kingdom but would also harm American studios, which significantly utilize skilled British specialists in the film industry and "world-class" studios and popular locations.

Reuters explains that Australia and New Zealand have become favoured locations for Hollywood producers in recent years, due to their landscapes, lower production costs than in the U.S., and government and regional authority subsidies.

In Australia, films from the "Matrix" series are produced, and it is also a permanent production base for Marvel studios. New Zealand has become an important production centre since Peter Jackson made his "Lord of the Rings" trilogy there. Hollywood producers are attracted by the numerous highly skilled specialists at various stages of film production, as well as modern post-production studios and companies specializing in special effects.

Australia's Foreign Minister Tom Burke stated that he has already spoken with representatives of the national film industry about Trump's idea. "Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry," said a statement issued by Burke.

New Zealand's Prime Minister Christopher Luxon declared at a press conference that his government "will be obviously a great advocate, great champion of that sector and that industry" for the national film sector.

On Sunday, Trump posted on the Truth Social platform: "Hollywood, and many other areas within the U.S.A., are being devastated," Trump wrote. He described this as a "concerted effort" that poses a "National Security threat."

"Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States," emphasised Trump. He also claimed that foreign countries have been "stealing the movie-making capabilities from the United States" by attracting film production with subsidies. He added that the tariffs would address the mistakes of his predecessors who "allowed this to happen."