Trumped… Again
Well, it’s done and dusted. We have another Trump presidency. So what does that mean for our screen industry?
Unfortunately, it would seem we have a volatile future in store.
As Trump has been telling us pretty much from Day 1, he wants to ‘Make America Great Again’.
He’s clearly indicated he wants to put tariffs on exports into the US market. For New Zealand, that could mean a 10 – 20% tariff on our NZ$8.8 billion exports to there. That will hurt our economy further and it’s already fragile. Shifting to other export markets may not be enough. The current government has instituted many cuts, including to a number of our cultural funding institutions, in its efforts to turn the economy around. With our exports suffering, we can expect little support and possibly more belt tightening in the arts and culture sector.
The Hollywood studios will benefit from the touted reduction in US corporate taxes from 21% to 15%. And they already have the ability to immediately write off the full cost of film and TV productions that a Trump bill introduced last time. But Hollywood hasn’t proven itself a friend to Trump, with many high profile celebrities and guilds openly backing Harris. We know Trump can be vindictive, as evidenced by his threats and or actions against CNN, Disney’s ABC and CBS. Many in Hollywood and the entertainment industry will undoubtedly be seeking shelter as he lashes out at anybody who went against him this election. Instability in the US entertainment sector means instability in the global entertainment sector, including for us.
The New Zealand Film Commission has a planned LA Showcase coming up in the next month. With so much uncertainty about to ensue in Hollywood, now may not be the best time to head there to drum up business.
Undoubtedly, one aim of any NZFC visit to LA would be to encourage more runaway production to New Zealand. However, one thing that may result from a Trump presidency is more studio production staying stateside, to help ‘Make America Great Again’. The international production pipeline in New Zealand from the second quarter of next year is already looking dicey. If the majority of now reduced US production stays there, a drop in internationals coming to NZ combined with an already slim funding stream for domestic production doesn’t bode well for us.
It’s hard at this point to see any upside for the New Zealand screen industry from a Trump win. Our best hope at this point is that we don’t experience a downside, even though there are signs that it may well be in the offing.
Tui Ruwhiu
Executive Director
Last updated on 7 November 2024
