NextFin news, On Tuesday, October 1, 2025, US President Donald Trump announced a 10% tariff on New Zealand wood products imported into the United States and signaled plans for a 100% tariff on films made outside the US. These measures have sparked uncertainty and concern among New Zealand exporters and the film industry.
Trade Minister Todd McClay expressed worries about the mounting uncertainty for New Zealand exporters following the tariff announcements. The 10% tariff on timber imports comes after a previous 15% tariff on all New Zealand goods to the US, which initially exempted wood products pending review.
Trump’s proposed 100% tariff on foreign films, announced via social media, aims to curb what he described as the loss of US movie-making business to other countries. He stated, "Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby." However, no detailed policy or implementation plan has been released by the White House.
New Zealand’s film industry, valued at approximately $3.5 billion, relies heavily on US markets, with about one-third of its revenue coming from American sources. The industry includes high-profile productions such as the "Lord of the Rings" series and collaborations with companies like Wellington’s Wētā FX, known for Oscar-winning special effects work.
New Zealand Film Commission Chief Executive Annie Murray emphasized that Trump’s statements remain unsubstantiated without formal policy details, making it difficult to assess the full impact. Industry leaders like Auckland film director Ant Timpson described the tariff threat as vague and challenging to enforce, given the global and digital nature of film production and distribution.
Experts note that films are primarily services rather than physical goods, complicating the application of tariffs. The 1988 Berman Amendment also restricts presidential authority to regulate the importation of informational materials, including films, though this has not been legally tested in this context.
Economists and industry representatives warn that while tariffs are paid by importers in the US, costs may be passed back to exporters or consumers, potentially affecting New Zealand’s export competitiveness. However, some analysts suggest the tariffs have not yet significantly impacted New Zealand’s cost of living or export volumes, with effects expected to emerge in upcoming trade data.
New Zealand continues to diversify its film partnerships globally, maintaining co-production treaties with 18 countries and expanding relationships with markets such as India and the Middle East. The government has also increased financial incentives for film production, including a $577 million boost to the International Screen Production Rebate announced in May 2025.
Despite the uncertainty, the New Zealand screen industry remains a vital contributor to the economy, generating $940 million GDP and employing 4,300 people in Auckland alone. Industry stakeholders stress the importance of clarity from the US government to enable informed business decisions.
In summary, President Trump’s tariffs announced on Tuesday, October 1, 2025, targeting New Zealand timber and foreign films, pose potential risks to New Zealand’s film sector and export economy. The lack of detailed policy and the complexity of implementing such tariffs on digital and service-based industries leave the full consequences uncertain as New Zealand navigates this evolving trade challenge.
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