A proposed 100% tariff on foreign-made films entering the US could devastate South Africa’s film sector and erase a vital global market.
US President Donald Trump has threatened a move that could cripple South Africa’s film and television sector.
A proposed 100% tariff on all foreign-produced content, if implemented, would apply to locally made films, potentially even productions filmed here and series sold into the US.
That market remains one of the most lucrative globally for international distribution, especially for English-language content.
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Trump announced on Sunday on his Truth Social platform that he was authorising the US department of commerce and the United States trade representative to immediately begin the process of putting tariffs on “any and all movies coming into our country that are produced in foreign lands”.
While the exact details of the sanctions remains unclear, Ben Cowley of Gravel Road Distribution said if implemented, it’s the beginning of the end.
“It’s the nail in the coffin for the African industry. Movies are either licensed to providers or platforms in the US and they pay a fee,” said Cowley.
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Industry warns of economic collapse and job losses
“So, if I sell a film to Netflix for a million dollars, will the US government apply a 100% tariff on that million? If that’s the case, it’s the end of exporting African film to the US.”
And it’s not just distributors who may face devastation. The local film industry employs thousands of people like actors, crew, wardrobe teams, drivers, caterers, accommodation providers and countless others.
A local production facilitator said the blow to regional economies like the Western Cape, a favourite with foreign productions, would be severe.
“Revenue losses of this magnitude can collapse the entire value chain.” Another producer said: “It’s a horror film and it looks like the villain’s going to come up trumps.”
And this isn’t just a South African problem. “If these tariffs extend to social media platforms, you’re talking about thousands of content creators across the continent who’ll be affected. And if the US tries to apply these rules to location shooting, it gets even more complicated.”
Hollywood could also suffer
Cowley also rejected Trump’s claim that Hollywood is being harmed by foreign tax incentives and offshore production. “The cost of film-making in Los Angeles is sky high,” he said.“Not even US-made content is produced entirely in the US.”
He cited Mission Impossible – Dead Reckoning, shot in SA.
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“About 80% of that film was done offshore. So, if the US taxes the proportional value of that offshore work, they’re punishing their own productions,” he said.
This would push up costs dramatically. “If you can’t make a $10 million film for $5 million by shooting abroad, it’s going to backfire on Hollywood, too. The economics don’t make sense unless the US offers tax breaks.”
Talent agent Victoria Molitsi of MLA said that the company was monitoring developments. Sources indicate that nearly half of any film’s box office takings, excluding China, come from international markets.
Trump’s move may be a reaction to China’s recent announcement it will reduce its intake of American films. While he’s framed it as a national security issue, the bottom line appears economic.
Ahead of his re-election campaign, Trump appointed actors Jon Voight, Mel Gibson and Sylvester Stallone as special envoys to Hollywood, vowing to make the industry “stronger than ever”.
However, audiences could be left footing the bill. For independent African producers, Cowley said the timing couldn’t be worse.
“Where are we supposed to release our work? The US market was our last remaining window of value,” he said. “Less content means fewer jobs globally and at home. The uncertainty is killing us.”
Western Cape Tourism, Trade and Investment Promotion Agency, as well as the department of trade, industry and competition did not respond to questions by the time of publication.
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