Donald trump is taking his trade war to the cinema with his 100% planned tariff on foreign films. It’s been over 100 days Donald trump was sworn-in as the president of the united state of America (USA). Since he assumed office tariff wars has been the order of the day between the US and its trade partners. Following ‘liberation day declaration’ which wasn’t ‘liberating’ for Africa and other US trade partners; in the spirit of ‘make America great again’ president trump slamed 10% baseline tariff across all US trading partners followed by reciprocal tariff to some countries he considered treats the US badly . in Africa Lesotho got the heftiest tariff of 50% while south Africa 30% and Nigeria the giant of Africa 14%. Although this tariff has been suspended for 90 days as the US look to hold more consultation and dialogue with its trading partners.
But recently Donald trump has plans of taking his tariff war to the big screen. On the 4th of May, president trump through his truth social media official handle, instructed the commerce department and US trade representative to place a 100% percent tariff on all movies imported into the US. He said the America movie industry (Hollywood) is dying while accusing other countries of offering bribes and incentives to lure filmmakers and studio away from America.
Statista report says: Hollywood has continued to be a dominant force in the global movie industry generating $36.6 billion at global box office in 2016. the highest for any movie industry. The Report also shows Hollywood maintains its foothold on BRICS countries like: Brazil, Russia, India and china. In Africa Hollywood holds significant share of revenue in markets like Nigeria and Ghana.
He further empathized that the tariff is a strategic move to save the Hollywood industry.
“the movie industry in America is dying a very fast death. Other countries are offering all sorts of incentives to draw our filmmakers and studious away from the united state” trump said.
“therefore, I am authorizing the department of commerce, and the united state 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 added.
However, this tariff when implemented could lead to serious complications in Africa movie industry, particularly, to south Africa the largest site for foreign film production and Nigeria Africa largest movie industry and second largest in the world.
“U.S.A., are being devastated.”
South Africa reputation as world film destination in Africa could face serious repercussions if president trumps recent policy becomes a reality.
Reports from south Africa the good news publication, shows from November 2023 to June 2024 foreign film production investment in south Africa grossed $137.77 million, with future projections exceeding $273.36 million (R5 billion) by October 2025.
Between November 2023 to August 2024 international production crews booked over 59000 hotel room, injection nearly $8 million into hospitality industry in south africa, with an average of $137 per night.
Bobby Amm, CEO of commercial producer association south Africa (CPASA), emphasized that the money generated from film production touches all sector of the economy quickly.
“ for every dollar spent on film production in south Africa an additional 14 cent dollar (2.50 south Africa rand ) is generated in the local economy” he said.
With additional spending on dinning, transport, and recreation highlights the significance of foreign filmmakers as high value business tourist.
The publication says over 8 months in 2024, film industry generated over 26,577 jobs for local freelance crew members and performers in south Africa.
2025 Projections for the South African film industry:
Flights:
Total projected flights: 12,036
Total projected revenue: R350,849,400
Airport Transfers:
Total projected transfers: 12,036
Total projected revenue: R7,654,896
Meals and Entertainment:
Average daily spend per person: R750
Total projected spend: R9,568,620
Hotel Stays:
Total projected hotel stays: 68,060 nights
Total projected revenue: R180,957,900
Tourism Economy:
Total projected turnover: R6.37 billion in 2025
If implemented these tariffs could have reaching implications for international film hubs like south Africa where Hollywood has increasingly turned to shoot films thanks to favorable incentives, lower cost and skilled local crews.
However CNN report expressed that many America filmmaker and studios said it’s more economical to shot movie outside the united state due to cheaper labors, and cut in taxes that other countries offer as compare to producing a film in los angels California.
“many American movies and shows are shot on location outside the united state. In addition to tax breaks. Many foreign staff demands cheaper pay, making it more economically viable to produce.” It noted.
While president trump grappled about production leaving the US due to soaring expenses; international locations, south Africa in particular benefited from this shift. As there’s has been a surge in south Africa international film production.
For countries like south Africa, with affordable and efficient movie production destination, the proposed tariff could mean fewer inbounds projects and a significant blow to local film economies.
However Trump believes other factors are responsible for the exodus of filmmaker in the united state. He said it’s a coordinated plan by other nations and describe it as a matter of national security to the united state.
“Hollywood, and many other areas within the U.S.A are being devastated. This is a concerted effort by other nations and therefore, a national security threat.” He said.
Meanwhile, expert says, screening in Nigeria communities abroad contributes to significant international viewership. According to a report from Nigeria entertainment conference (NEClive), the Nigeria entertainment industry would reach an estimated $14.82 billion revenue in 2025, up from $4 billion revenue recorded in 2013, NEClive noted that movie production has surge from 1800 films in 2013 to 2500 films in 2025 this makes Nigeria the 2nd largest film producer in the world only behind Indians Bollywood the largest film producer in the world.
“the sector has moved from the production and distribution of 1800 films worth $5.1 billion in 20213 to 2500 film worth $6.4 billion and counting. This makes Nigeria the 2nd largest film producer in the world.”NEClive report noted.
Nollywood on the hand could suffer increased cost in importing movie into the US and impact in film distribution. Nollywood movies could face doubled cost in importing movies into the US as ticket sales in cinema would double in price to over 100 percent increment, this surge in price might force consumers to go for American movie produced in the US.
Nollywwod contributes 2.3% of Nigeria GDP according to statista. And is very popular among African in Diaspora. African in the US have a major play in the growth of Nollywood globally. Online streaming site like Amazon will increase the price of Nollywood movies on their site if the trump tariff is implemented.
Complicating matter further is the fact that films, now largely digital product, falls under a world trade organization (WTO) moratorium that prohibits tariffs on digital goods. This raises questions about the feasibility of the proposal and how it would be enforced under the international trade law.
President trump said his tariff aims to take out other movie industry in America highlighting that America wants movie made in America
“We want movies made in America, again” trump said.
NWALI CHIDOZIE MICHAEL.
