The world of cinema is no stranger to drama, but the latest plot twist comes not from a Hollywood script but from the political stage.
United States (US) President Donald Trump has sent shockwaves through the global film industry, threatening to impose a 100 per cent tariff on film productions outside the US.
For Australia—often dubbed ‘Hollywood Down Under’—this announcement has sparked concern, confusion, and plenty of questions about the future of our thriving screen sector.
In a recent post on his social media platform, Truth Social, Trump claimed, ‘The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States.’
He described these incentives as a ‘National Security threat’, suggesting that foreign governments deliberately lure offshore US productions.
While the specifics of how such a tariff would be implemented remain unclear, the intent is to discourage US studios from filming abroad and make it more expensive for American audiences to watch movies made outside the US.
Australia has become a magnet for big-budget international productions thanks to our stunning landscapes, world-class crews, and generous government incentives. Recent blockbusters such as The Fall Guy, Kingdom of the Planet of the Apes, and Thor: Ragnarok were all filmed on our shores.
Screen Australia’s latest figures show that nearly half of the $1.7 billion spent on screen production in 2023-2024 came from international projects.
Our federal government’s location offset scheme offers a 30 per cent rebate for large-scale productions, with additional sweeteners from state governments and post-production incentives.
These policies have helped create thousands of jobs, boosted local businesses, and put Australia on the global cinematic map.
If the US were to slap a 100 per cent tariff on films made outside its borders, the financial equation for Hollywood studios would change overnight.
Suddenly, Australia’s cost savings and incentives might not be enough to offset the extra expense of exporting those films back to the lucrative US market.
This could mean fewer American blockbusters being shot here, and potentially higher ticket prices for Australian-made films shown in the US.
Matthew Deaner, chief executive officer of Screen Producers Australia, summed up the uncertainty: ‘At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented.’
‘There are many unknowns for our industry, but until we know more, there’s no doubt it will send shock waves worldwide.’
Australia’s Arts Minister, Tony Burke, has quickly reassured the industry, stating, ‘Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.’
The government is monitoring the situation closely and is expected to advocate strongly for the interests of local filmmakers and workers.
It’s not just the big studios and A-list stars who stand to lose. The Australian film industry supports thousands of jobs, from set builders and caterers to costume designers and camera operators.
Local businesses—from hotels to hardware stores—benefit when international productions come to town. And let’s not forget the cultural impact: Australian stories and talent have a global audience, and films like George Miller’s Mad Max series become international icons.
If tariffs make it harder for Australian films to reach US audiences, or for US studios to film here, the ripple effects could be felt across the economy and our cultural landscape.
Australia isn’t alone in facing this uncertainty. Countries like New Zealand, Canada, and the United Kingdom also rely on international productions and offer similar incentives. Trump’s proposed tariffs could trigger a global reshuffling of where movies are made—and who gets to see them.
Industry groups are calling for clear communication and strong government advocacy. There may also be opportunities to negotiate exemptions or new trade agreements to protect film and television content flow between Australia and the US.
Are you worried about the impact of US tariffs on Australia’s film industry? Have you worked on a local production, or do you have a favourite Australian film you think deserves a global audience? Share your thoughts and experiences in the comments below.
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So that means he is also hitting the US Movie Makers if they Film the Movie outside the US !!