Films produced outside the United States are a threat to national security and propaganda, US President Donald Trump said on his social media account Truth Social on Sunday.
“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 U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!” the White House chief emphasised.
As a countermeasure and to combat the “new threat to the United States,” Trump said he had authorised the Department of Commerce to “immediately begin the process of imposing a 100% tariff on all films produced abroad that are then shipped into the country.”
According to FilmLA, a non-profit organisation that tracks film and television production in Los Angeles, production has declined by nearly 40% over the past decade. At the same time, governments around the world are offering more generous tax breaks and cash rebates to attract producers and get a larger share of the $248 billion that Ampere Analysis predicts will be spent globally on content production in 2025.
Politicians in Australia and New Zealand said on Monday they would defend their film industries following the US president’s comments. Australian Home Affairs Minister Tony Burke said he had spoken to the head of the government agency Screen Australia about the proposed tariffs.
“There should be no doubt that we will unreservedly defend the rights of the Australian film industry,” he said in a statement.
Some Marvel superhero films were shot in Australia, and New Zealand was the location for The Lord of the Rings films.
Over the years, incentive programmes have influenced where films are shot, increasingly driving film production out of California to other states and countries with favourable tax conditions, including the United Kingdom.
However, tariffs are designed to encourage consumers to buy American products, and American-made films dominate the domestic market.
China has increased its domestic film production, culminating in the animated blockbuster Ne Zha 2, which grossed more than $2 billion (£1.5 billion) this year. But almost all sales were in mainland China. In North America, it earned just $20.9 million (£15.7 million).
Earlier, Trump said that at some point he would reduce import tariffs on China, because without this measure, Washington and Beijing would not be able to do business with each other. However, the US president did not specify when he intends to reduce customs tariffs on China.
On April 2, Trump announced the introduction of tariffs on 185 countries. He said that the US had been “looted, raped and plundered by nations near and far, friends and foes alike.” Tariffs on goods from China rose to 145% as a result of several increases.
On May 3, increased import tariffs on auto parts came into effect in the US, with the levy now standing at 25%.
