Screen Producers Australia (SPA) has called on the re-elected Labor Government to act swiftly and future-proof the screen sector, following US President Donald Trump’s threat to impose a “100 per cent tariff” on feature films produced outside the US.
In a post to his Truth Social platform this morning, the president noted the US film industry was “dying a very slow death”, arguing foreign production incentives draw filmmakers and studios away from the United States.
“Hollywood, and many other areas within the U.S.A., are being devastated,” he wrote.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
It is unknown what the 100 per cent tariff would apply to, or how or when it would be implemented, raising questions about the impact on upcoming foreign-shot studio tentpoles, such as the newest Mission: Impossible instalment, which was shot across Norway, South Africa, and the UK. Trump’s post also conspicuously leaves out television, much of which is also increasingly being produced outside the US amid the global growth of streaming services.
The announcement comes less than a year after the Australian Government permanently increased the Location Offset to 30 per cent after extensive lobbying from the industry. In December, the government also reduced the incentive’s minimum qualifying Australian production expenditure (QAPE) from $20 million back to $15 million, in order to attract more mid-budget projects.
A number of high-profile US productions have taken advantage of the federal offset this year, including Anaconda, Runner, and a third, as-yet-untitled Godzilla vs Kong film.
SPA CEO Matthew Deaner, who backed the Location Offset raise at a Senate Hearing last year, said although there were many unknowns for the Australian industry in Trump’s announcement, it would no doubt send shockwaves worldwide.
“For the Australian industry, it reinforces the need for the government to focus immediately and swiftly on building a resilient local industry that can withstand global shocks like this,” he said.
“As we get set for our annual Screen Forever conference, set to start tomorrow, we’re certain today’s announcement will be the catalyst for many, many conversations between local and international industry executives and screen professionals.
“SPA will continue to monitor developments and await the Executive Order, which should provide further information on this.”
A potential film tariff adds another dimension to the negotiations ahead for Labor, which was comprehensively returned to power on Saturday.
Before the election, the government’s proposed local content obligations for streaming services were called into question by the Motion Picture Association, which advised the US Government that any mandate would violate the free trade agreement between Australia and the US.
Australia was also among 14 territories whose audiovisual services were singled out in the US Trade Representative’s National Trade Estimate report on foreign barriers.
However, there may yet be cause for optimism in the ongoing discussions between the two countries, with Trump identifying Prime Minister Anthony Albanese as someone he was “friendly with” in comments published in the Sydney Morning Herald, adding they had a “very good relationship”.
Albanese also told the Herald that Trump had been “very generous in his personal warmth and praise” in congratulating him on his win.
“He was fully aware of the outcome, and he expressed the desire to continue to work with me in the future.”