Prime Minister Christopher Luxon says NZ is the “best place to make movies” in the world but there was little detail available about Trump’s announcement.
Asked by the Herald how damaging the tariffs could be to economic growth in NZ, where US productions contribute more than a billion dollars annually, Luxon said it wasn’t possible to say what the exact effect could be.
“I just think it’s way too early, let’s see the detail,” he said.
In a social media post on Monday morning, Trump said the US film industry was “dying a very fast death” as other countries offered incentives to draw filmmakers away from Hollywood.
He claimed this was a “concerted effort” by other nations and a “national security threat”.
“Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.”
He said governments were “giving big money” to productions.
“They are supporting them financially. So that is a sort of threat to our country,” Trump added.
While it’s unclear how the tariffs will be applied, US productions in NZ contribute significant revenue to the local screen industry, and wider economy.
According to a report from the Ministry of Foreign Affairs and Trade in March, NZ’s film sector generates $3.5 billion annually, with about one-third of revenue coming from the US. It said, given this, efforts to “retain strong in-bound film productions are important”.
NZ Film Commission chief executive Annie Murray told the Herald 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.”
Luxon said he was a “great advocate, great champion” of the film sector.
“We’ve advocated strongly that we don’t believe tariffs is the way to go forward. We continue to do that, but importantly, there are also swings and roundabouts and opportunities that come in that environment as well.”
Trade Minister Todd McClay said he was also waiting to see detail about the tariffs, including what exactly the tariffs would apply on.
Labour leader Chris Hipkins said the film industry was “incredibly important” to NZ as it supported the economy, generated jobs and had positive flow-on effects to sectors like tourism.
“I think a US tariff on the film and television industry would be disastrous for NZ. I think it is something the NZ Government should speak vigorously against.”
Irene Gardiner, president of NZ’s Screen Production and Development Association (SPADA), said it “would be a terrible shame” for tariffs to be applied on films, whether from US productions or NZ films trying to be distributed in the US.
“We love having American productions working here - it’s great for the economy and it’s great for the screen industry. And we love our best NZ movies and stories being seen by American audiences. I guess we will be doing a wait and see.”
The Hollywood Report, a major US entertainment media outlet, made specific mention in its reporting on the tariff announcement of NZ’s film industry.
“Disney and 20th Century’s Avatar: Fire and Ash (Dec. 19) was made in NZ, which has become a production hub over the past 20 years after The Lord of the Rings filmmaker Peter Jackson put it on the map,” the outlet reported.
A recent Hollywood blockbuster to benefit from the rebate was Marvel’s Deadpool and Wolverine. It spent more than $9 million in qualifying NZ production expenditure, receiving a nearly $2 million rebate.
NZ is well-known for its film production, with franchises like the Lord of the Rings and the recent Avatar films receiving significant support from the local industry. The recent A Minecraft Movie, which has done considerable box office business, was also produced here.
“There has been a global reduction in the number of new titles being commissioned, so a bit more money being spent on fewer titles.
“What that means is that we are able to focus on fewer things, doing them really, really well,” she said.
She said NZ was “world-renowned” for its rebate system, considering a “real selling point for NZ”.
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.
