“It’s, along with all the pieces else, messaging and propaganda! Due to this fact, I’m authorizing the Division of Commerce, and the US Commerce Consultant, to right away start the method of instituting a 100% Tariff on any and all Films coming into our Nation which are produced in Overseas Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Loading
Talking to media on the White Home garden after saying the transfer, Trump claimed “different nations have been stealing the movie-making capabilities from the US … we’re making only a few films now. Different nations, a whole lot of ’em, have stolen our film trade. They’re not prepared to make a film inside the US.”
It’s true that Hollywood studios have moved a lot of their bodily manufacturing exercise offshore, attracted by tax incentives that make it cheaper to movie elsewhere than California.
Australia gives a 30 per cent incentive to international productions capturing right here by the federal authorities’s location incentive, with state governments sometimes providing between 10 and 15 per cent on prime of that. Publish-production and digital results work is supported by a 30 per cent federal rebate, with some states additionally providing a further 10 per cent.
Many different nations supply such incentives – although Australia’s are among the many most beneficiant. Quite a few US states supply them as nicely.
Hollywood studios have fortunately adopted a “footloose” strategy to manufacturing, following the tax {dollars} and sound stage availability world wide.
However Hollywood nonetheless dominates the film enterprise. In line with thenumbers.com, the US produced 1151 films in 2024, and claimed virtually 70 per cent of world field workplace.
In 2023-24, Australia recorded a spend of $768 million by international (principally Hollywood) movie and tv productions, together with for publish, digital and visible results manufacturing work solely. That was down 38 per cent on the 12 months earlier than, and 13 per cent under the five-year common.
In response to questions from this masthead, federal Arts Minister Tony Burke indicated his authorities wouldn’t take the transfer evenly.
“I’ve spoken to the CEO of Display Australia, and we’re monitoring this carefully,” Burke stated.
“No one must be underneath any doubt that we are going to be standing up unequivocally for the rights of the Australian display screen trade.”
Although Trump framed it as a transfer in assist of Hollywood, the tariff transfer is more likely to be met with a fancy response there.
For the studios, the imposition of a 100 per cent tax on any movie produced outdoors the US successfully wipes out any benefits afforded by capturing offshore, forcing them to convey work again to the US. And meaning, for the unions representing crew, the transfer may very well be widespread.
However nothing on the planet of tariffs is ever that straightforward. It’s already dearer to movie within the US than elsewhere, which is exactly why the studios go for international areas. A flood of initiatives within the US wouldn’t solely make productions dearer, it could drive up the price of crew, which may have an extra inflationary affect and in the end circulate on to the price of tickets on the cinema, which may scale back attendance.
Trump’s 100 per cent film tariff could also be designed to stave off Hollywood’s quick dying. But it surely simply would possibly hasten it as a substitute.
With Michael Koziol and Reuters
Get alerts on vital breaking information because it occurs. Join our Breaking Information Alert.
