White House backpedals after Truth Social post draws alarm across Australia, UK, and Hollywood
The White House has moved to downplay President Donald Trump’s shock announcement of a 100% tariff on all movies “produced in Foreign Lands,” amid mounting global concern over its potentially devastating impact on the international film industry.
In a post on Truth Social on Sunday, Trump said he had directed the Department of Commerce and the US Trade Representative to begin implementing the tariff immediately, declaring that America’s film sector was “DYING a very fast death” and accusing other nations of undermining it through tax incentives. He framed the issue as a national security threat, adding: “It is, in addition to everything else, messaging and propaganda!”
However, a day later, White House spokesperson Kush Desai attempted to soften the impact of the announcement, saying that “no final decisions on foreign film tariffs have been made” but that the administration was “exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
The lack of detail surrounding the proposal — including how it would be applied, what qualifies as a “foreign film,” and whether streaming releases would be included — has triggered confusion and anxiety throughout the global screen industry.
Fallout in Australia and beyond
In Australia, where international productions contributed A$767m to the screen economy in 2023–24, the response was swift. Arts Minister Tony Burke confirmed he had spoken with Screen Australia and vowed that “nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.”
Screen Producers Australia CEO Matthew Deaner called the proposal “a move that will send shockwaves worldwide,” warning of significant risks to jobs, investment, and the viability of Australian production hubs like the Gold Coast and Melbourne. The impact would likely fall hardest on local crews servicing international productions.
Academic observers, like QUT’s Amanda Lotz, see the tariff threat as a moment of reckoning for Australia’s reliance on foreign productions. She argues it could force a long-overdue pivot toward sustainable local storytelling: “There’s a desperate need for policy leadership in this area.”
New Zealand Prime Minister Christopher Luxon pledged to advocate for the sector, while the UK government and film union Bectu warned the measure could deal a “knockout blow” to Britain’s recovering production sector — which saw £4.8bn of spending on film and high-end TV in 2024, with 86% from international sources.
Hollywood’s complex global web
Though Trump cast the tariff as an effort to stem offshoring and revitalise a “Golden Age of Hollywood,” critics say the modern film industry is deeply enmeshed in global co-productions, with streaming platforms, multinational financing, and cross-border production practices blurring national lines.
Timothy Richards, founder of UK-based cinema chain Vue, noted that modern film production defies easy categorisation: “Is it where the money comes from? The script, the director, the talent, where it was shot? The devil will be in the details.”
According to FilmLA, production in Los Angeles has dropped nearly 40% over the past decade, largely due to cost pressures and overseas tax incentives. Canada, the UK, Australia, New Zealand, and parts of Europe have emerged as major production hubs for US studios, with big-budget projects like Mission: Impossible – The Final Reckoning, Deadpool & Wolverine, and The Fall Guy filmed partly or entirely abroad.
In many cases, foreign governments subsidise production to attract investment. For instance, Universal reportedly received £89m in UK taxpayer support to film Jurassic World: Rebirth. Australia offers a 30% location offset, alongside further post-production and state-based rebates.
Industry braces for details
Industry analysts say it remains unclear how tariffs could practically be applied to intangible goods like digital films, especially on streaming platforms where consumers pay for subscriptions rather than individual titles. Former Commerce official William Reinsch warned that retaliatory tariffs on US films could backfire: “The retaliation will kill our industry. We have a lot more to lose than to gain.”
While the White House now says it’s merely “exploring options,” the initial announcement has already disrupted markets. Shares in Disney, Warner Bros Discovery, Paramount, Amazon and Netflix all dropped in early Monday trading. Whether the move will translate into enforceable trade policy, or remain rhetorical bluster, remains to be seen.
Meanwhile, literary and visual arts figures in Australia have warned that Trump’s language — invoking propaganda and national security — may herald a broader cultural protectionist push, with potential spillovers into publishing and the arts.
