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Confusion reigns for the Australian film industry after President Donald Trump announced plans to impose a 100 per cent tariff on all movies produced outside of America that are screened across the US.
The move not only puts at risk Hollywood films lured to Australia for filming and post-production through government incentives, but also local films that could be destined for US screens.
The tariff, if it is implemented, would impact a significant portion of the Australian screen industry which was worth $1.7 billion across 169 Australian and international productions in FY24.
“The movie industry in America is dying a very fast death,” Trump posted on Truth Social.
“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.”
Trump says he has authorised the Department of Commerce and the US Trade Representative to “immediately begin the process of instituting a 100 per cent tariff on any and all movies coming into our country that are produced in foreign lands”.
In response to the shock announcement, Matthew Deaner, the CEO of Screen Producers Australia (SPA), says it remains unclear how the tariff will work in practice and how it will be implemented.
“There are many unknowns for our industry, but until we know more, there’s no doubt it will send shockwaves worldwide,” says Deaner.
“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.”
The tariff threat is likely to be a hot topic of conversation for Screen Forever, an annual three-day conference of screen industry heavyweights which kicks off on the Gold Coast tomorrow.
“We're certain today's announcement will be the catalyst for many, many conversations between local and international industry executives and screen professionals,” says Deaner.
"SPA will continue to monitor developments and await the Executive Order, which should provide further information on this."
The most recent Drama Report published by Screen Australia shows that international features accounted for more than a third of the local film industry’s total production expenditure in FY24 – or $645 million of the $1.697 billion total.
Producer Offset financing, which comprises government incentives to lure productions to Australia, contributed $245 million in investment across all drama production during the year. This is on top of $49 million contributed from state and territory agencies.
NSW accounted for most of the year’s expenditure across all screen productions, including television programs, at 47 per cent, followed by Victoria at 19 per cent and Queensland at 18 per cent.
“We understand how competitive funding is, with Screen Australia supporting 27 per cent of the direct funding applications received for scripted content in 2023-24,” said Screen Australia CEO Deirdre Brennan in December when announcing the Drama Report, the Australian screen industry’s economic snapshot.
“In an environment where international financing is also increasingly harder to source, we need to pull together as an industry to ensure the sustainability of the sector.”
However, Trump cites the incentives to lure US productions overseas as a “national security threat” to America.
The Federal Minister for the Arts, Tony Burke, says he has spoken to the CEO of Screen Australia and “we're monitoring this closely”.
“Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” says Burke.
Screenwest CEO Rikki Lea Bestall points to a "period of instability" in the short term as the industry navigates what the US tariff will mean to the film industry in Western Australia and nationally.
"Details are not yet clear as to how the planned film tariffs will be applied and how this may affect the film sector in Western Australia/Australia," says Bestall.
"The value chain associated with making screen content is large and complex, and there is no detail on where these tariffs might sit - for example in production, distribution or financing.
"Without seeing the full detail, what I can say is that our immediate pipeline in WA is strong and is not reliant on US productions. I don't see any significant impact on the Western Australian film industry."
The industry in WA is aiming to gain momentum once the Perth Film Studios open in Malaga next year.
"There has been an exponential increase in film production in Western Australia in recent times," says Bestall.
"Big things are happening in the local film industry. We have had record funding and support from Lotterywest and the WA Government and have seen unprecedented levels of production in the state."
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