Trump's proposed film tariffs send shockwaves through Hollywood
US President Donald Trump announced on Sunday that he plans to impose 100% tariffs on foreign films. The following day, after the stock prices of American film studios dropped, the White House clarified that a final decision on this matter had not yet been reached.
President Trump stated that he would "immediately begin the process of imposing a 100% tariff" on films produced abroad. He justified the decision by citing a need to protect the national film industry, which he claims is experiencing a "very fast death" due to foreign competition.
Stock prices for Netflix, Disney, Warner Bros., Discovery, Paramount, and Comcast plummeted in response to Trump's declarations, as he aimed to "save Hollywood" by taxing foreign films, according to CNBC.
The British film industry estimates that the introduction of such tariffs would deliver a significant blow, while Australia and New Zealand express a desire to support their domestic productions. Meanwhile, the stock prices of American film studios continue to fall, according to media in both America and the UK earlier on Monday.
It remains unclear which productions would be subjected to Trump's tariffs and who would ultimately bear the cost of these duties. Given that many Hollywood films are shot abroad, influenced by factors such as location, production costs, production bases, or tax incentives, it's a complex issue.
The British newspaper "The Guardian" reports that representatives of the local film industry and trade unions believe Trump's tariffs could deal a substantial blow to the sector.
Many American films are produced in British studios; recent successes include "Barbie," the "Mission: Impossible" series, and films from the "Star Wars" franchise.
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 of the parliamentary culture and media committee assessed that tariffs on British film production would destroy jobs in the United Kingdom, while also negatively impacting American studios that rely heavily on British specialists and facilities, which are renowned for their quality and popular locations.
Reuters explains that Australia and New Zealand have become popular locations for Hollywood producers in recent years, due to their scenic landscapes, lower production costs compared to the US, and financial incentives from government and regional authorities.
In Australia, films from the "Matrix" series are produced, and it serves as a key production base for Marvel studios. New Zealand has become a vital production hub since Peter Jackson made his "Lord of the Rings" trilogy there. Hollywood producers are attracted by the numerous skilled specialists across various stages of film production, as well as modern post-production studios and companies specialising in special effects.
Australia's Foreign Minister, Tom Burke, stated that he has already spoken with representatives of the national film industry regarding Trump's plan. "Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry," said Burke in a statement.
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."
