SWAN View filmmaker Steven Mihaljevich says he’s got questions about who, what and how a 100 per cent tariff on foreign films would work but says there may be an upside to the tax.
Earlier this month US President Donald Trump announced on his social media platform Truth Social that he authorised both the Department of Commerce and the US Trade Representative to start work on a 100 per cent tariff on films coming into the US produced in foreign countries.
“The movie industry in America is dying a very fast death,” Mr Trump said in his May 5 post.
“We want movies made in America, again.”
Mr Mihaljevich partly agreed with Mr Trump.
“Trump is right about one thing and that is that the film industry is dying a really fast death,” Mr Mihaljevich said.
He said filmmakers sought production overseas due to a variety of factors.
“Streaming services, screenwriters strikes, actor strikes, production costs, a lack of funding to compete with a growing number of independent filmmakers, AI and Covid are all factors that have influenced the decline of the movie industry.”
He said these factors contributed to the globalisation of the film industry.
“Whilst America is certainly feeling the pinch of the downward spiral of the movie industry, other countries have it worse and rely on America for funding and other critical areas to make a production.
“And Hollywood leans on overseas production studios for financial and viability reasons.”
However, Mr Mihaljevich said the film tariff may inspire or motivate the Australian government to do something about the country’s national quotas.
“We have been relying on America for far too long.
“Unfortunately, Australia does not consume its own content as much as it should.
“For myself personally and my own films, I have always felt that Australia was the last place to put their hand in.”
Mr Mihaljevich said his 2020 film The Xrossing didn’t get a proper Australian release and was distributed by an American company.
“This is a film that is 100 per cent Australian.
“Its cultural significance, its characters, story and social themes explored are all inherently Australian, and still the film was picked up in overseas festivals before it came to Australia.
“Sometimes it feels like the perception is, if US applaud it, it must be something.”
Five years on, he said The Xrossing was planned to get an Australian release.
A similar situation happened to Mr Mihaljevich’s second feature the Violett.
“The film has been released internationally and had its fair share of American film critics applauding the film for different reasons, and only now is Australia releasing the film.”
A Department of Local Government, Sport and Cultural Industries (DLGSC) spokesperson said both the federal and state governments were waiting for further clarification about the potential impact of tariffs.
The DLGSC spokesperson said the upcoming $233.5 million Perth Film Studios (PFS) in Malaga would put WA in a position to attract large scale national and international films, TV and gaming projects.
“Construction of the facility is approximately 60 per cent complete and is expected to be finished in late 2025 with capacity to welcome productions from mid-2026.”
Creative Industries Minister Simone McGurk was asked if she was concerned about the foreign film tariff, how she thought it might impact the PFS and if any preparations were being made.
Ms McGurk said the state government worked with partners around the world, not just the US.
“We are committed to making films here in WA and supporting the pathways for economic diversification and jobs here in WA,” she said.
According to the state government’s April 17 statement, the PFS would be operated by Perth-based company Home Fire.
Home Fire declined to comment.
Mr Mihaljevich said he wasn’t sure how the PFS would impact the film industry.
“It will definitely help provide resources and ways to aid, bringing directors’ complex visions to life and different ways in doing so.
“But will it provide more job opportunities for independent directors?
“Or will it create an even more competitive environment for Perth directors who are already doing it tough?”
He said the important thing was to continue the drive to create a film culture where filmmakers felt supported and encouraged.
“This is going to take a lot more than a film studio unfortunately but it is a step in the right direction.”