‘Short sighted and won’t work’: Trump’s tariffs to smash Aussie films
Premier Chris Minns has vowed to defend the local screen industry and jobs after Donald Trump imposed tariffs on films “produced in foreign lands”.
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The burgeoning Australian film industry has been left reeling in the wake of US President Donald Trump’s unexpected revelation his government would impose a 100 per cent tax on movies “produced in foreign lands” with NSW Premier Chris Minns declaring it a “bad decision”.
It comes after Sydney and NSW has established itself as a major hub for international productions, many of which have been major box office successes like Sydney Sweeney’s Anyone But You.
“This is a bad decision for films and movies, whether they’re made in Australia or the United States,” Mr Minns told The Daily Telegraph.
“It’s short sighted and won’t work. We’ll be defending our screen industry as well as the local jobs it creates.”
Mr Trump announced on social media that all films made outside the US would be hit with the tariff, describing the incentives used by countries like Australia to lure the film business to their shores as a national security threat.
“The movie industry in America is dying a very fast death,” Mr Trump announced.
“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.
“This is a concerted effort by other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda.”
According to FilmLA, movie production in Los Angeles has plummeted by almost 40 per cent over the past decade.
Last year, Australia increased its production incentive from 16.5 to 30 per cent. Additionally, there are state incentives available that can add up to 15 per cent.
Mr Trump’s new tariffs will hit the NSW film industry harder than anywhere else in the country, with the state home to 51 per cent of Australia’s screen production business.
This poses a direct threat to the state’s billion dollar sector, with the film and television industry contributing $1.115 billion to the NSW economy in 2023-24 and employing nearly 12,900 people.
The latest ABS data shows the industry was worth around $5 billion to the Australian economy in 2021-22.
As Australia’s film industry scrambles to make sense of the new tariffs, Federal Arts Minister Tony Burke said he had reassured the sector that the government would stand up for them.
“I’ve spoken to the CEO of Screen Australia and we’re monitoring this closely,” he said.
“Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”
Trade Minister Don Farrell labelled the tariffs “unjustified”.
It remains unclear how the tariffs would be calculated and charged to businesses and consumers.
Screen Producers Australia CEO Matthew Deaner said the industry was trying to make sense of Mr Trump’s announcement while calling on the government to act swiftly to help safeguard the future of the industry.
“There’s no doubt it will send shockwaves worldwide,” he said.
Business NSW chief executive Daniel Hunter agreed, stating the tariff would “hit regional NSW hard”.
“Films like Elvis, Fall Guy, Mad Max Fury Road and Furiosa were all filmed in Australia, creating thousands of jobs and pumping millions into the Australian economy,” he said.
“Tariffs like these could shut the door on future opportunities, stalling growth in both the screen industry and regional communities that rely on it.”
In January, Mr Trump announced he had appointed Australia’s Mel Gibson along with Sylvester Stallone and Jon Voight as special ambassadors with a goal of bringing back film business lost to foreign countries.
The announcement comes a fortnight after the US President paused his sweeping reciprocal tariffs to negotiate individual trade deals with each country.
Australia is currently subject to a 10 per cent tariff on all goods exported to the US and a 25 per cent tariff on steel and aluminium exports.
Last month, China restricted imports of Hollywood movies in retaliation to punishing tariffs imposed by the US.
Originally published as ‘Short sighted and won’t work’: Trump’s tariffs to smash Aussie films
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