Fearing imitation by other nations, in an equally dramatic response US President Donald Trump announced an across the board 100 percent tariff on all films. He argues that these movies originate from the so-called “foreign lands.” This decision is intended to help support the reeling Hollywood film industry by encouraging “American made movies.” This policy extends well beyond the shores of the United States. It raises huge alarm bells with producers and parliamentarians in places like Australia and New Zealand.
The tariffs only go into effect to counter a highly lucrative business model that American studios, including Disney, have used profitably for decades. Many of these studios have taken advantage of tax breaks offered by countries such as Britain, Canada, Ireland, and Australia to lower production costs. Australia, aka “Aussiewood,” has recently emerged as the go-to location for big-budget Hollywood films. Marvel coastbusters and smashes like “Mission Impossible” and “Elvis” year have all been filmed there, too. Through a series of increasingly generous tax incentives and cash grants, the country has recently positioned itself as a foreign filmmaker’s best friend.
As Australia’s Foreign Minister Penny Wong recently cautioned, these tariffs could prove counterproductive. Instead of advancing American cinema, they might do the exact opposite. Wong flagged those tariffs as a potential threat to Australia’s burgeoning film industry. They might affect much bigger offshore neighbor New Zealand, home to a country best known for starring in the “Lord of the Rings” trilogy.
A recent survey found that studio leaders prefer where production happens almost exclusively outside the United States. As we consider this trend, it poses a critical question regarding the efficacy of tariffs as a tool to promote domestic filmmaking.
“Our message is we make great films together,” – Foreign Minister Penny Wong
Hollywood has a strong history of successful partnerships with Australian talent. The overall effects of the film Crocodile Dundee were large in putting Australia’s infant film industry on the worldwide stage. Because of the amazing local talent and natural beauty, Hollywood’s most awarded directors are increasingly making Australia their backdrop of choice. This trend bolsters Australia’s standing as one of the most important resources for global cinema.
The tariffs became a significant disruption to film production. They threaten the time-honored legacy of future Hollywood blockbusters such as “The Matrix,” “Elvis” and “Crocodile Dundee.” Now, under Trump’s administration, the White House is (bluntly) taking action to halt this increasing practice of filming overseas. Much of this shift has caught fire due to friendlier tax policies overseas.
In response to these developments, Trump has appointed veteran stars Sylvester Stallone, Mel Gibson, and Jon Voight to help revitalize Hollywood, ensuring it becomes “bigger, better and stronger than ever before.”
Still, industry experts remain cautious. Annie Murray remarked, “We’re mindful, this is an evolving situation and it’s too early to speculate on what this could mean.”
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