Australia and New Zealand are gearing up to defend their booming film industries in the face of a drastic new trade move proposed by former U.S. President Donald Trump. On Monday, both nations reaffirmed their commitment to supporting local film production after Trump declared plans to impose a sweeping 100% tariff on movies made outside the United States.
Trump, writing on his social media platform Truth Social, blamed foreign governments’ film incentives for the steep decline of America’s movie industry, which he described as dying a “very fast death.” He directed U.S. agencies, including the Department of Commerce, to begin imposing heavy tariffs on all non-American films entering the U.S. market.
In response, Australia’s Minister for Home Affairs, Tony Burke, expressed strong support for the domestic screen sector. “There should be no confusion—Australia will robustly defend its film industry,” Burke stated, following discussions with Screen Australia, the national agency that funds screen content development and promotion.
Across the Tasman Sea, New Zealand Prime Minister Christopher Luxon echoed a cautious but supportive tone, saying his government would review the full details of Trump’s plan. “We’ll remain strong advocates for our film sector,” Luxon said, emphasizing its economic importance.
Both countries have seen a surge in international film projects thanks to cost-effective production environments and generous government incentives. Australia’s industry, valued at over A$4 billion as of 2022, has hosted major productions like The Matrix franchise and Marvel’s Thor: Love and Thunder. Meanwhile, New Zealand—home to iconic blockbusters such as The Lord of the Rings trilogy—generates around NZ$3.5 billion annually from film, with a significant portion tied to American partnerships.
Since 2019, Australia has invested over A$540 million in tax offsets to attract global studios, with high-profile recipients including Universal and Legendary Pictures. In New Zealand, government data from March 2025 reveals that about one-third of film revenue is linked to U.S. projects.
As tensions rise over Trump’s proposed tariffs, both nations appear poised to protect their status as filmmaking powerhouses on the global stage.
Written By Queen Diana Story
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