Donald Trump film tariff threat: World media spotlight New Zealand industry, Paul Goldsmith says ‘concerning’

The minister in charge of New Zealand’s film industry believes it “would be concerning” if the United States implemented a tariff on films produced offshore as US President Donald Trump title="https://www.nzherald.co.nz/topic/tariffs/">mooted yesterday.

Arts, Culture and Heritage Minister Paul Goldsmith says the Government is “very much in favour of the current regime”, which includes significant rebates for international productions in New Zealand.

Those types of incentives have been described as a “threat” to the United States by Trump, but Goldsmith wouldn’t characterise New Zealand’s subsidies like that.

Meanwhile, Tourism Minister Louise Upston acknowledged New Zealand’s tourism sector was connected to the film industry – visitors often travel here after seeing our landscapes on the big screen – but said the Government was working to make sure “that we are attracting visitors from across the globe and not putting all of our focus on one market”.

The comments come as international media spotlight the New Zealand film industry as one potentially affected by any new tariff regime.

Trump on Monday posted on social media that he authorised officials to begin the process of instituting a 100% tariff on any films coming into the country that were produced elsewhere.

He said other countries were providing incentives to draw filmmakers away from Hollywood, something he considered a “national security threat”.

US President Donald Trump proposed the tariffs in a social media post. Photo / Washington Post

“They are supporting them financially. So that is a sort of threat to our country,” Trump later added.

The US President’s post put Hollywood and international film hubs into a tailspin, but the White House has since said it is still working through different options and no final decisions have been made.

New Zealand’s reaction

The Kiwi film sector generates about $3.5 billion annually, with roughly a third of that coming from US productions. New Zealand has put significant effort into attempting to lure international studios to film here, including with its New Zealand Screen Production Rebate (NZSPR).

Prime Minister Christopher Luxon on Monday wouldn’t directly criticise the tariff prospect or say what the potential effect could be on economic growth here, noting there was little detail available about how the tariffs would work.

Asked for his thoughts on Tuesday morning, Goldsmith said “it would be concerning” for New Zealand, “but we’ve got to wait and see what the details are”.

The minister said the Government was seeking information on the tariffs, but he hadn’t seen anything yet from the US administration. Goldsmith said it could be appropriate at some point to get modelling done on the tariff’s economic impact.

“The film industry is very important economically as well as culturally. We’re very supportive of it and New Zealand, both on domestic production and international production, has offered subsidies,” Goldsmith said.

“We have a huge impact globally and so we are very much in favour of the current regime.”

Asked if New Zealand’s rebate scheme was a national security threat, Goldsmith said “I wouldn’t put it that way”.

Paul Goldsmith says it "would be concerning" if Donald Trump's proposed tariffs were implemented.

Upston, the Tourism Minister, said her ministerial colleagues would be having conversations about the tariff threat and acknowledged that the film industry is connected to tourism.

“I know recently in India, for example, [there was] lots of interest from Bollywood. They looked at one of the movies that was made in New Zealand over 20 years ago and the impact that had on the number of people from India wanting to visit.

“So definitely it’s connected, but we’re really focused on emerging markets like India, getting the numbers back from China, which is currently only sitting at 60%, and our big campaign straight into Australia.

“We’ve got to make sure that we are attracting visitors from across the globe and not putting all our focus on one market.”

Chris Bishop, the National MP for Hutt South, said he was a “big supporter” of the film industry, noting that Wellington was a key base for it.

“It is what it is. But I back films being made here and I think all Wellingtonians are proud of Wētā and [Sir] Peter Jackson and what he’s been able to accomplish over the years.”

Labour’s Reuben Davidson was part of the screen industry prior to entering Parliament, having helped produce TV shows.

Davidson said tariffs “could be disastrous” to a “really important” sector for New Zealand. He said he had seen little from the minister to support the film industry over the past year.

New Zealand Film Commission chief executive Annie Murray told the Herald on Monday that officials were aware of Trump’s post.

“We’re in the process of speaking with our international partners about what the implications could be,” she said.

“We’re mindful, however, this is an evolving situation and it’s too early to speculate on what this could mean.”

International media reaction

Numerous international media outlets have highlighted the potential impacts on productions in New Zealand in their reporting on the Trump tariff threat.

The Guardian called New Zealand a major production hub, highlighting global franchises such as The Lord of the Rings, The Hobbit and Marvel films that have been produced here.

Bloomberg noted responses from Luxon and local screen producers guild president Irene Gardiner, while also noting New Zealand had served as a filming location “due to its dramatic landscapes and production incentives”.

The Hollywood Reporter wrote about how famed film director James Cameron had “spent the better part of two decades building up his bespoke production hub in New Zealand to make his Avatar movies”.

Even China’s Global Times, part of the Chinese state media network, mentioned the Prime Minister’s comments. A film producer it cited is reported as saying the uncertainty caused by the proposed tariffs could negatively impact New Zealand and Australia’s local film industries.

Jamie Ensor is a political reporter in the NZ Herald Press Gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office.