The international industry is reacting swiftly to the news US President Donald Trump is considering imposing 100% tariffs on all films produced o
The international industry is reacting swiftly to the news US President Donald Trump is considering imposing 100% tariffs on all films produced outside of the US, “in foreign lands”.
According to the Guardian, Australia’s home affairs minister Tony Burke said he had spoken to the head of the government body Screen Australia about the proposed tariffs. “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” he said in a statement.
Screen Producers Australia (SPA) has posted a statement that reads: “At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented,” said SPA CEO Matthew Deaner. “There are many unknowns for our industry, but until we know more, there’s no doubt it will 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.
“As we get set for our annual SCREEN FOREVER conference, set to start tomorrow, we’re certain today’s announcement will be the catalyst for many, many conversations between local and international industry executives and screen professionals.
“SPA will continue to monitor developments and await the Executive Order, which should provide further information on this,” said Deaner.
New Zealand prime minister Christopher Luxon told a news conference the government was awaiting further detail of the proposed tariffs. “We’ll have to see the detail of what actually ultimately emerges. But we’ll be obviously a great advocate, great champion of that sector in that industry,” he said.
UK sales agents
Leading London-based sales agents began to digest the news on the eve of Cannes – and cautioned against panic.
“It sounds potentially disastrous for the international film industry,” said one. “America is our biggest market and one which leads the rest of the world. It’s unclear how the proposed tariffs would be implemented but if they apply to foreign independent productions to be distributed in the US the implications for our industry could be seismic.
”I do note, however, that we have absolutely no detail on this and would caution against panic as an immediate reaction to the news.”
“What a bombshell on the eve of Cannes,” said another. “It might never get into effect, but just the possibility of such a tariff will create unnecessary uncertainty towards the US market which was just starting to show positive signs of recovery after the strikes
“It could have the double deterring effect of affecting production finance of films that count on the US sale down the line as critical collateral for financiers, and making import of foreign language films prohibitive.
“One can wonder how it affects global streamers like Netflix, whose business model is to produce locally, and exploit globally including in the core US domestic market,” they continued. “Would a show like Squid Game be taxed in the US for American subscribers to watch? or would it be taken off the service all together in America to avoid the tariff?”
More to come.
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