Trump's proposed film tariffs spark industry turmoil
U.S. President Donald Trump announced on Sunday that he would impose 100% tariffs on foreign films. A day later, when stock prices of American film studios dropped, the White House clarified that a decision on this matter had not yet been finalized.
Trump stated on Sunday that he would "immediately begin the process of imposing a 100% tariff" on films produced abroad. He justified his decision by emphasizing the need to protect the national film industry, which he believes is facing a "very fast death" due to foreign competition.
Stock prices for companies like Netflix, Disney, Warner Bros., Discovery, Paramount, and Comcast plummeted following Trump's announcement. The president aims to "save Hollywood" by imposing tariffs on foreign films, according to a report by CNBC.
The British film industry fears the introduction of such tariffs would be devastating, while Australia and New Zealand have expressed their intention to support their domestic productions. Meanwhile, American film studio stocks continue to decline, as reported by both American and British media earlier on Monday.
It remains unclear which productions would be affected by Trump's proposed tariffs and who would ultimately bear the costs. Many Hollywood films are shot abroad due to location preferences, lower production costs, and tax incentives, often involving multiple countries.
The British newspaper "The Guardian" reports that, according to local film industry representatives and trade unions, Trump's tariffs could inflict severe damage on the sector.
Many American films are produced in British studios; recent popular films like "Barbie," the "Mission Impossible" series, and films from the "Star Wars" franchise were shot there.
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 warned that tariffs on British film production would destroy jobs in the United Kingdom and also harm American studios, which significantly benefit from skilled British specialists and "world-class" studios and locations.
Reuters explains that Australia and New Zealand have become favored locations for Hollywood producers in recent years, thanks to their scenic landscapes, lower production costs compared to the U.S., and government and regional subsidies.
In Australia, films from the "Matrix" series are made, and it serves as a permanent production base for Marvel Studios. New Zealand has been an important production center since Peter Jackson filmed his "Lord of the Rings" trilogy there. Hollywood producers are drawn to the highly skilled specialists, modern post-production facilities, and companies specializing in special effects available in these countries.
Australia's Foreign Minister Tom Burke has already discussed Trump's proposal with representatives of the national film industry. "Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” stated Burke.
New Zealand's Prime Minister Christopher Luxon confirmed 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 wrote 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."
Trump emphasized, "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States." He also accused foreign countries of "stealing the movie-making capabilities from the United States" by attracting film production with subsidies. He added that the tariffs would correct the mistakes of his predecessors who "allowed this to happen."
