US President Donald Trump is threatening to impose a severe 100% tariff on movies made outside the US. On the heels of this rapid expansion, the American film industry is experiencing a precipitous drop. International markets are waiting with shiny new lures and dollars to attract those filmmakers away from the U.S. Calculated risks The proposed tariffs have potential to dramatically alter the terrain of global cinema and Malta’s booming production environment, including for American and foreign productions alike.
That’s nothing compared to Trump’s other attacks on movies. This remark just underscores his firm commitment to protecting homegrown filmmakers. The American film industry, by contrast, is booming all the way to a trade surplus. International markets brought in more than 70% of Hollywood’s box office haul last year. Even with all of its strength in the local marketplace, Hollywood still encounters brisk competition and logistical hurdles from overseas.
Challenges for the US Film Industry
The currently ongoing Hollywood guild strikes of 2023 are severely impacting film and television production across the United States. At the same time, recent wildfires across the Los Angeles region have further complicated matters. These shakedowns have forced filmmakers to seek more secure settings for their productions. Developing countries, such as Australia, increasingly raise the stakes as their film industry continues to boom.
Australian producer and director Robert Connolly has found a silver lining. He discusses a huge opportunity in the genre to invest in Australian stories and Australian productions. The health of the Australian film market! Success Follow-up assets include blockbuster “Better Man,” a biopic on Robbie Williams and “The Mongoose,” with Liam Neeson.
In fact, many other American productions have flocked to Australia lately, like Apex, starring Charlize Theron, and Apples Never Fall. This trend indicates the changing reality in which filmmakers are choosing locations that provide the most favorable environment and incentives.
Implications of Tariffs on Global Filmmaking
“That’s not a huge problem,” Arts Minister Tony Burke said when asked if imposing tariffs would lead to “a huge disaster.” This would cripple Australian filmmakers’ ability to access the highly lucrative American market. A blanket tariff on foreign-made films risks discouraging production and limiting choices for audiences, potentially harming both Hollywood films and the global filmmaking community.
Heavy opposition from experts has claimed that passing such tariffs would lead to billions of dollars in lost wages. This move will likely push thousands of production jobs out of the industry. The changes to the US film industry are unlike anything we have seen before. Through their incentive programs, production is fleeing California to Georgia, New Mexico, and even Canada.
Canada has become a popular filming location for Hollywood due to its government incentives and geographical proximity to the US. Unfortunately, the potential tariffs would exacerbate this trend. Filmmakers may be required to find other production destinations to avoid increasing expenses in the US market.
“There’s simply no precedent or sense for applying tariffs to these types of creative services.” – Ann Koppuzha
The impact of these tariffs goes far beyond monetary damages. Creative professionals have raised concerns about their potential to stifle innovation and limit diversity in storytelling. Steven Schiffman argues that blanket rules often miss the fact that production doesn’t work in such black and white terms. He posits that at times filmmakers need to make more practical decisions on where they film instead of just sticking to the rules.
The Future of Film Incentives
Against this, newfound industry chorus has emerged demanding a re-examination of film incentives. STEPS Frank Albarella on the importance of economic development strategies that understand that the power and promise of great storytelling knows no borders. He poses critical questions regarding the balance between nurturing American storytelling through targeted incentives versus inadvertently forcing audiences to pay more for potentially narrower creative options.
Ben Eltham argues that Australia has an historic opportunity to rethink our screen policy incentives. He advocates channeling funds to support the creation of local content and spurring the development of local storytelling and writing talent. Such an approach would help build a more robust local production ecosystem that would better weather the shocks from the global market.
Kate Carnell highlights the significance of accessing the American market, stating that “not being able to get our product into the American market without a significant extra cost is a huge problem,” particularly since the Australian market is relatively small compared to the US.
