Donald Trump just released his first real policy proposal, and it’s a doozy – to slap a 100% tariff on every movie made outside the U.S. This decision has created a storm of trepidation amongst the Australian film community. This surprise decision has left most of the Australian filmmaking community reeling. Now they’re worried about its possibly devastating impact on their industry and the whole economy.
The anticipated tariff would slash millions of dollars in revenue for Australia. It would profoundly damage the nation’s rapidly growing international film industry. In 2023-24, Australia will spend over $1.7 billion to subsidise production on screens of all sizes. Nearly half of that budget was allocated to productions from abroad. Of this, $767 million was actually for producing international productions in Australia.
Former Prime Minister Kevin Rudd, who now serves as Australia’s ambassador to the US, publicly criticized Trump’s proposal, emphasizing the potential consequences for beloved Australian productions. Specifically, he highlighted the popular Australian animated children’s series “Bluey.” He was particularly worried about what he termed a “death tax” on these cultural treasures.
“I don’t think we want to see a tax on Bluey.” – Kevin Rudd
Rudd commented on the negative impacts of Trump’s tariffs in detail. He asked how it could lead to discriminatory restrictions between countries that affect the flow of films.
“What happens if we all lock down our countries with competitive, punitive arrangements against each other’s movies?” – Kevin Rudd
Mark Ryan, agrees with these concerns. He explains that the tariffs are likely to cause “massive disruption” to international productions coming here and for the fledgling Australian film industry. He emphasized that the tariff would decimate a very important and large part of the industry. This would be the case if it is indeed meant to cover both cinema and television.
“If it does include both film and TV, that’s a massive chunk of the industry that we lose,” – Ryan
Ryan pointed out the job losses that would result from this new policy. He said, “That’s a future lost – that’s a lot of jobs that will be lost.”
Production companies all too often contract sectored filming and post-production work to countries with cheaper alternatives. The tariffs the administration has proposed could discourage them from doing so going forward. The lack of clarity regarding the tariffs adds to the confusion. Even still, it’s unclear if they will only apply these rules to theatrical releases or all films and TV made internationally.
Matthew Deaner, CEO of Screen Producers Australia Matthew Deaner warned about the lack of detail and the uncertainty surrounding how the proposal would be implemented. As he explained, this lack of clarity creates a host of issues in the industry.
“At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented.” – Matthew Deaner
He went on to stress that the prospect of the uncertainty would almost certainly send tremors around the world to the international film community.
“There are many unknowns for our industry, but until we know more, there’s no doubt it will send shockwaves worldwide.” – Matthew Deaner
Political leaders of all stripes in Australia have strongly condemned Trump’s tariff proposal. New South Wales Premier Chris Minns described it as “a massive shame” and a “real kick in the guts to a great industry.” He denounced the current political atmosphere in the US, implying that such exclusionary policies won’t last forever.
“The madness coming out of the United States, surely it can’t stick around forever. Ultimately, either this administration will pass or common sense will prevail.” – Chris Minns
Arts Minister Tony Burke said there was “overwhelming support” for the industry leaders. In so doing, he confirmed again his commitment to safeguarding Australian filmmakers from overseas coercion. He vowed that they would fight tooth and nail for the rights of the Australian screen industry.
“Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.” – Tony Burke
The tariff would ultimately increase the cost of US movie tickets. This amendment will have serious consequences for international films coming through our borders, including Australian films. This possible price hike adds insult to injury for filmmakers who have long had to depend on international markets for their survival.
While conversations around this proposal are moving forward, there are still plenty in Australia’s film industry who are still deeply worried about its impact. They ask not just how it will impact their in-flight projects but the future health of these long-running international partnerships.
