Dr Mike Seymour is an Emmy-nominated visual effects professional and senior lecturer at the University of Sydney Business School. In the The Australian, he argues the tariffs would be a “disaster”.

“If implemented, it would not only harm the Australian film industry but also damage Hollywood and limit the choices available to American audiences,” Dr Seymour said.

“It would punish studios for using global infrastructure. This would be counter-productive when the US film industry is already under strain. Hollywood is still recovering from the economic impact of COVID-19, the collapse of DVD revenues, ongoing labour strikes and declining box office returns. The ability to stretch limited budgets by filming abroad has been one of the few remaining levers available to many producers."

“Cultural protectionist policies are common but rarely take the form of tariffs,” said Dr Vladimir Tyazhelnikov, senior lecturer in economics and specialist in global tariffs.

“Instead, countries typically rely on tools like local content quotas. For example, France and Australia have requirements for domestic content on radio and streaming platforms, and China restricts access to foreign film licenses through a strict annual cap.”

“Tariffs on films are unusual because it’s hard to define what counts as a ‘foreign’ movie. Hollywood productions are often filmed and financed globally for both cost savings and artistic reasons. If such films are considered foreign, it will hurt American studios rather than help them,” Dr Tyazhelnikov said.

He and Dr Seymour agree the tariffs will likely lead to retaliation, which could devastate the American film industry.

“About 70 per cent of global box office revenue now comes from international markets. Hollywood relies on global engagement,” Dr Seymour said.

“While Chinese films earn little in the United States, Hollywood depends heavily on Chinese box office revenue. Retaliation will deal a serious blow to the U.S. film industry,” Dr Tyazhelnikov said.

“More broadly, this policy risks setting a dangerous precedent. Until now, tariffs have been applied mainly to goods. Taxing cultural imports like movies could open the door to tariffs on a wide range of services from software to airline travel, potentially destabilising global trade in services.”

Dr Seymour said tax incentives have played a pivotal role in shaping global production decisions for decades, giving American companies access to Australia’s stunning locations and world-class crews for big budget productions.

“The impact on Australia would be swift and severe. States such as NSW and Queensland have built robust screen production industries, attracting major international projects such as Thor: Love and Thunder, Elvis, Shang-Chi and the Legend of the Ten Rings, and The Fall Guy.

“These productions inject millions into local economies and support a wide network of jobs in everything from set design and location services to visual effects and post-production.

“When Australian screen content is under pressure because of the rise of global streamers and the decline of free-to-air broadcasting, these international partnerships are more important than ever.”

Associate Professor Bruce Isaacs, Chair of Film Studies and senior lecturer at the University of Sydney, said the tariff strategy is misguided.

“Films in contemporary production begin as large, often multinational productions, and this includes Hollywood studio films.

“Most concerning about this announcement is that it aggressively takes Trump's American isolationism to culture — it's simply another way of questioning the value of diverse, international, 'un-American' stories.

“This would be debilitating for an American industry that has made leaps toward opening up globally,” Associate Professor Isaacs said.

Top image: Hollywood actor Chris Hemsworth acts a scene during the filming of the movie Thor: Ragnarok in Brisbane, Monday, Aug. 22, 2016. (AAP Image/Dan Peled)