‘Cataclysmic’: Trump tariffs could destroy Australian film
US President Donald Trump’s announcement of a 100% tariff on movies “produced in foreign lands” could completely upend Australian film, according to the local industry. Industry figures said the tariff would be devastating for local movies seeking a US audience as well as putting hundreds of millions of Hollywood production dollars are at risk.
Trump made the announcement on Monday on his Truth Social platform, saying he was authorising 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.”
Overseas productions were responsible for injecting $768 million into the Australian economy during the 2023-24 financial year, according to figures from Screen Australia. This amount fell from over $1 billion in the prior financial year, as writers’ strikes and cost issues drove down overall production during the last financial year.
These productions are drawn to Australia due to a number of incentives, including a 30% ‘location offset’ rebate for films shot in the country, or a simimlar offset for using Australian post-production and visual effects teams. The various states also have additional offsets that can be stacked on top of the federal schemes.
Hollywood rom-com Anyone But You shot this unsanitary scene in Sydney Harbour
It’s these cost breaks that Trump rallied against, writing “other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States”. Trump claimed Hollywood is “being devastated” by film productions moving offshore, calling it “a concerted effort by other nations and, therefore, a national security threat.”
Australian film-maker Heath Davis fears any tariff would be “cataclysmic” for the local industry. Aside from taking overseas production dollars from Australia, it will also damage the chances of local films making any money in America.
“The US market is the holy grail,” Davis told Mumbrella. “This would essentially be the final nail in the coffin. No one is going to invest in a project if the biggest territory is suddenly unavailable. And no sales agent is going to want to see a film that it can’t profit from.”
Mumbrella contacted numerous Australian production houses and industry bodies, including VicScreen (formerly Film Victoria), Matchbox Pictures, Disney Studios, and Screen Australia. None were willing or available to speak on the record.
Screen Producers Australia chief Matthew Deaner said in a statement, it is currently unclear “what this announcement means in practice or how it will be applied and implemented” saying the declaration will 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.”
Arts Minister Tony Burke said in a statement: “I’ve 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.”
This suggests minimum local content quotas for overseas streamers could be introduced to offset the billion-dollar annual loss.
In The Matrix (shot in Sydney), there is only one banking option.
In mid-2024, the Albanese government promised to introduce quotas that required overseas-owned streaming services to produce a certain portion of Australian-made content. There has been no movement on the legislation, possibly due to fear of trade tariff retaliations from the US.
Netflix made $1.3 billion in revenue in the Australian market during 2024, according to ASIC filings, but sent $1.2 billion offshore in the form of “distribution fees.” As the AFR notes, this means 93% of its local takings went directly overseas, and local profits were just $22m.
With film tariffs looming, and overseas streaming giants paying minimal tax – and dodging the local content laws that bind Australian broadcasts, the Albanese government’s “unequivocal” support may be overdue.
“If there’s anymore evidence that we need to start prioritising the domestic industry this is it,” Davis said. “And that means starting with enforcing quotas on Aussie content with the streamers.”
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