Trade War: Australia, New Zealand vow to defend film industries against Trump’s proposed tariffs
Australia and New Zealand have vowed to defend their thriving film industries after US President Donald Trump announced plans to impose a 100% tariff on all foreign-made films entering the American market.
Trump made the announcement in a post on his Truth Social platform, arguing that overseas incentives offered to filmmakers were accelerating what he described as the “very fast death” of the American movie industry. He said US agencies, including the Department of Commerce, would begin the process of implementing the tariffs immediately.
The move has prompted concern from major international filming hubs such as Australia and New Zealand, which have long attracted Hollywood productions due to lower production costs and generous government incentives.
Australia’s Home Affairs Minister Tony Burke responded swiftly, saying he had already held discussions with Screen Australia—the government body responsible for funding local film development—regarding the proposed tariffs.
“Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” Burke said in a statement on Monday.
New Zealand Prime Minister Christopher Luxon also addressed the announcement, noting that his government was awaiting more information but reaffirmed its strong support for the local film sector.
“We’ll have to see the detail of what actually ultimately emerges,” Luxon said. “But we’ll be obviously a great advocate, great champion of that sector and that industry.”
Both nations have established themselves as prime filming destinations in recent decades. Australia was the backdrop for blockbusters such as The Matrix and is home to major production bases including Marvel Studios. Since 2019, the Australian government has allocated A$540 million in tax incentives to draw international film projects, including Thor: Love and Thunder, The Fall Guy, and Godzilla vs Kong.
New Zealand, best known for hosting the Lord of the Rings and Hobbit trilogies, sees its film sector generate NZ$3.5 billion (approximately $2 billion USD) annually, with a third of that revenue coming from the United States, according to a March 2025 report by its foreign ministry.
As the two countries await further clarification on Trump’s proposed tariffs, industry insiders fear the move could upend decades of international collaboration in film production and distribution, while raising costs for US studios and limiting creative partnerships worldwide.
