Just when you thought the cost of a night at the movies couldn't get any dearer, along comes a policy proposal that might have you checking your wallet twice before heading to the cinema.
US President Donald Trump announced on Monday that he plans to impose a 100 per cent tariff 'on any and all movies that are made outside of the United States' - a move that could significantly impact Australia's booming film industry and potentially drive up the cost of your favourite blockbusters.
This isn't just political posturing with distant consequences. Australia has become a major destination for Hollywood productions over the past decade, and this tariff threat could affect everything from the movies showing at your local cinema to the thousands of Australians working behind the scenes in the film industry.
In this article
Australia's Hollywood Boom Under Threat
Trump first threatened this 100 per cent tariff back in May, but his latest announcement has sent fresh shockwaves through an industry that's been thriving Down Under.
Australia attracted $1.1 billion worth of production across 30 major projects in just the first half of 2025—a testament to how attractive our shores have become for international filmmakers.
The numbers tell a compelling story. Recent Hollywood hits filmed in Australia include major blockbusters you've likely enjoyed at the cinema: Anyone but You, The Fall Guy, Godzilla x Kong: The New Empire, and Kingdom of the Planet of the Apes. These productions haven't just provided entertainment—they've employed thousands of Australians and pumped billions into the local economy.
'This is fantastic news for the industry. The 30 percent location offset will provide certainty for international productions'
What makes Australia so attractive to Hollywood? It's largely about money—specifically, the generous tax incentives our government offers.
Australian lawmakers recently increased the location tax credit from 16.5 per cent to 30 per cent, making it even more cost-effective for international productions to film here rather than in traditional Hollywood locations.
The Tariff Challenge: Taxing the Intangible
Here's where things get complicated—and potentially absurd. If Trump follows through, this would mark the first time he's essentially imposed a tariff on a service rather than a good.
Unlike importing cars or steel, movies are largely digital products that don't cross borders in traditional shipping containers.
It's unclear how these tariffs would operate, since movies and TV shows can be transmitted digitally without going through ports.
Industry experts are scratching their heads over the practical implementation. How do you tax a digital file? What happens to films that are partially shot in multiple countries? The questions multiply faster than a Marvel movie sequel.
What's at Stake for Australian Workers
The timing couldn't be more concerning for Australia's film industry. High-profile productions currently filming outside the US include Christopher Nolan's The Odyssey and Mel Gibson's upcoming Passion of the Christ sequel—exactly the type of big-budget international productions that could face these tariffs.
Australia's Film Industry by the Numbers
$1.1 billion invested in first half of 2025
30 major international productions
30 per cent location tax offset available
Additional 30 per cent rebate for post-production and visual effects
Thousands of jobs created annually
The ripple effects extend well beyond the film sets themselves. When major productions come to Australia, they support entire supply chains—from catering companies and accommodation providers to transport services and local suppliers.
Tourism also benefits significantly, with filming locations often becoming major drawcard destinations for international visitors.
The Economics Don't Add Up
From an economic standpoint, Trump's tariff threat seems to contradict basic trade realities. International markets make up over 70 per cent of Hollywood's total box office revenue, meaning American studios actually depend heavily on global audiences for their profits.
If other countries retaliate with their own restrictions on US films—which several experts have suggested could happen—it could backfire spectacularly for American studios. Such tariffs risk triggering retaliatory actions on US films, even though the US has historically been the largest exporter of films globally.
Industry Response: From Anger to Absurdity
Political reactions have been swift and, in some cases, rather colourful. California Governor Gavin Newsom called Trump's move '100 per cent stupid', while industry representatives have pointed out the logical inconsistencies in the policy.
The entertainment industry unions have had mixed reactions. Some see potential benefits if it forces more production back to the US, while others worry about the broader economic disruption and higher costs for consumers.
Did you know?
Did you know?
Movies and television shows are among America's most successful export products, contributing significantly to the country's positive balance of trade. Restricting foreign competition could actually harm this success story by inviting retaliation from other countries.
What This Means for Your Movie Night
Let's get to what really matters for your entertainment budget. If these tariffs become reality, the costs would likely be passed on to consumers in various ways:
Cinema Tickets: Movie distributors facing 100 per cent tariffs would need to recoup those costs somewhere. Higher distribution costs typically translate to higher ticket prices at your local cinema.
Streaming Services: Platforms like Netflix, Disney+, and others that feature international content could see their costs rise dramatically, potentially leading to subscription price increases or reduced content libraries.
Home Entertainment: DVD and digital purchases of affected films would likely become significantly more expensive.
Example Scenario
- Consider a typical Hollywood blockbuster that costs $200 million to make, with $50 million of that spent on production in Australia. Under Trump's proposed tariff, the distributor might face an additional $50 million tax bill. Those costs don't disappear—they get built into ticket prices, streaming fees, and digital purchases that Australian consumers ultimately pay.
Source: 9 News Australia / Youtube.
The Bigger Picture: Culture and Competition
Beyond the immediate economic impacts lies a broader question about cultural exchange and international cooperation. Australia's film industry has benefited enormously from knowledge transfer, with local crews learning cutting-edge techniques from international productions.
The threat also comes at a time when Australia has been actively competing with other countries to attract film productions.
The UK offers up to 25 per cent cash rebates, Ireland provides 32 per cent tax credits, and Singapore offers up to 50 per cent of qualifying expenses. Australia's competitive position in this global market could be significantly affected by US policy changes.
Looking Ahead: Uncertainty in the Industry
The film industry thrives on long-term planning. Major productions are typically planned years in advance, with location decisions, cast commitments, and financial arrangements all locked in well before cameras start rolling. This kind of policy uncertainty makes that forward planning extremely difficult.
It remains unclear whether Trump will follow through on this threat and how exactly he plans to enforce such a tariff. The legal and practical challenges are substantial, but the mere threat creates uncertainty that could influence industry decision-making.
Trump's Film Tariff Threat: What You Need to Know
- 100 per cent tariff proposed on all foreign-made films
- Could increase movie ticket prices and streaming costs
- Australia's $1.1 billion film industry at risk
- Thousands of Australian jobs potentially affected
- Legal and practical implementation challenges remain unclear
- Industry experts doubt the policy's effectiveness
What Happens Next?
For now, the Australian film industry is taking a wait-and-see approach. Productions already in development will likely continue, but future investment decisions may be influenced by this ongoing uncertainty.
The Australian government will undoubtedly be watching closely and may need to consider its own response strategies. This could include diplomatic engagement with the US, adjustments to local incentive programs, or efforts to diversify the international production base.
For everyday Australians, the immediate impact may be felt in entertainment costs rather than employment, unless you work in the film industry. However, the broader economic implications—including potential job losses and reduced tourism—could have wider effects on the economy.
What Does This Mean for You?
While the policy details remain unclear, Australian consumers should be prepared for potential increases in entertainment costs. If you're planning a cinema outing or considering streaming service subscriptions, it might be worth keeping an eye on pricing changes over the coming months. The impact on your wallet will depend largely on whether Trump follows through and how the industry responds.
What This Means For You
The absurdity of trying to tax digital content that crosses borders electronically highlights the challenges of applying traditional trade policy to modern creative industries. Whether this latest threat becomes reality or joins the long list of political pronouncements that never materialise remains to be seen.
What's certain is that Australia's film industry—and the thousands of people employed in it—will be watching nervously as this story unfolds. After all, in an industry built on storytelling, this particular plot twist has the potential for a very unhappy ending.
What are your thoughts on how this tariff threat might affect your movie-watching habits? Have you noticed Australian locations in your favourite recent films? Share your experiences and concerns in the comments below.
Original Article
https://www.news.com.au/national/po...84bdda405b5e4b6f9ee6f85bdf463a?from=rss-basic
Trump announces 100 per cent tariff on foreign-made movies | CNN Business
Cited text: Follow · President Donald Trump said in a Truth Social post on Monday he will be imposing a 100 per cent tariff “on any and all movies that are made outside o...
Excerpt: US President Donald Trump announced on Monday that he plans to impose a 100 per cent tariff 'on any and all movies that are made outside of the United States'
https://www.cnn.com/2025/09/29/economy/trump-movie-tariff
Trump announces 100 per cent tariff on foreign-made movies | CNN Business
Cited text: The president initially threatened a 100 per cent tariff on foreign-produced movies in May, arguing that other countries offer tax incentives that have drawn ...
Excerpt: Trump first threatened this 100 per cent tariff back in May
https://www.cnn.com/2025/09/29/economy/trump-movie-tariff
Donald Trump Tries Movie Tariff Saber-Rattling Again
Cited text: The U.K. saw $4 billion in production spend on 118 projects, while Canada saw $2.3 billion on 91 projects and Australia booked $1.1 billion on 30 proj...
Excerpt: Australia attracted $1.1 billion worth of production across 30 major projects in just the first half of 2025
https://www.hollywoodreporter.com/b...trump-movie-tariff-saber-rattling-1236387960/
Australia Juices Hollywood Filming Incentives With Location Tax Credit
Cited text: After the Sony Pictures' rom-com 'Anyone but You' and 'The Fall Guy' shot locally, lawmakers nearly doubled the 16.5 percent location tax credit to 30...
Excerpt: Australian lawmakers recently increased the location tax credit from 16.5 per cent to 30 per cent
https://www.hollywoodreporter.com/b...ng-incentives-location-tax-credit-1235939162/
Tax rebates for film and television producers | Office for the Arts
Cited text: On 4 July 2024, the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024, allowing for changes to the Location ...
Excerpt: Australian lawmakers recently increased the location tax credit from 16.5 per cent to 30 per cent
https://www.arts.gov.au/funding-and-support/tax-rebates-film-and-television-producers
Trump announces 100 per cent tariff on foreign-made movies | CNN Business
Cited text: If Trump follows through with his threat, it would mark the first time he’s essentially imposed a tariff on a service rather than a good.
Excerpt: If Trump follows through, this would mark the first time he's essentially imposed a tariff on a service rather than a good
https://www.cnn.com/2025/09/29/economy/trump-movie-tariff
Trump Takes His Tariff War to the Movies Announcing 100 per cent Levies on Foreign-Made Films
Cited text: Claiming that movie production “has been stolen’’ from Hollywood and the U.S., Trump posted on his Truth Social platform that “I will be imposing a 10...
Excerpt: It's unclear how these tariffs would operate, since movies and TV shows can be transmitted digitally without going through ports
https://www.usnews.com/news/busines...s-announcing-100-levies-on-foreign-made-films
Trump promises steep tariffs for foreign movies and imported furniture | Donald Trump News | Al Jazeera
Cited text: It was unclear how these tariffs would operate, since movies and TV shows can be transmitted digitally without going through ports.
Excerpt: It's unclear how these tariffs would operate, since movies and TV shows can be transmitted digitally without going through ports
https://www.aljazeera.com/news/2025...ffs-for-foreign-movies-and-imported-furniture
Trump Again Promises “100 per cent Tariff” On Movies Made ...
Cited text: While Trump hasn’t signed any Executive Order on his latest proposed tariffs as of yet, their implication would bring down a heavy domestic burden on ...
Excerpt: High-profile productions currently filming outside the US include Christopher Nolan's The Odyssey and Mel Gibson's upcoming Passion of the Christ sequel
https://deadline.com/2025/09/trump-movie-tariffs-newsom-1236564814/
Trump takes tariff war to the movies by announcing 100 per cent tax on foreign-made films | PBS News
Cited text: READ MORE: Trump threatens 100 percent tariff on foreign-made films, saying domestic movie industry is dying · At the same time, international markets...
Excerpt: International markets make up over 70 per cent of Hollywood's total box office revenue
https://www.pbs.org/newshour/nation...s-by-announcing-100-tax-on-foreign-made-films
Trump threatens 100 per cent tariff on foreign-made movies
Cited text: What to watch: Tariffing foreign-made films risks triggering retaliatory actions on U.S. films. The U.S. has historically been the largest exporter of...
Excerpt: Such tariffs risk triggering retaliatory actions on US films, even though the US has historically been the largest exporter of films globally
https://www.axios.com/2025/09/29/trump-tariff-foreign-movies-hollywood
Trump announces 100 per cent tariff on foreign-made movies—ABC7 Los Angeles
Cited text: Adding 'Today's move is 100 per centstupid.'
Excerpt: California Governor Gavin Newsom called Trump's move '100 per cent stupid'
https://abc7.com/post/trump-announces-100-tariff-foreign-made-movies/17903575/
Trump Again Promises “100 per cent Tariff” On Movies Made ...
Cited text: Today’s move is 100 per cent stupid.” · RELATED: Jimmy Kimmel Predicts Trump Will “Try To Sue” ABC After Rant About Talk Show Return: “He Does Know Bad Rating...
Excerpt: California Governor Gavin Newsom called Trump's move '100 per cent stupid'
https://deadline.com/2025/09/trump-movie-tariffs-newsom-1236564814/
Trump announces 100 per cent tariff on foreign-made movies—ABC7 Los Angeles
Cited text: It remains to be seen if the president follows through on this threat and how exactly he plans to enforce the latest tariff.
Excerpt: It remains unclear whether Trump will follow through on this threat and how exactly he plans to enforce such a tariff
https://abc7.com/post/trump-announces-100-tariff-foreign-made-movies/17903575/
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