Trump’s Tariffs Impact New Zealand Film

“At least on what I’ve heard so far, I am concerned about it for the New Zealand film industry because I think it’ll be much harder for them to compete.” Sir John Key.

Filmed in New Zealand

Donald Trump has raised the possibility of tariffs and their potential to replace federal income tax. Anything is possible in Trump’s imagination. Remember tariffs are just taxes on goods imported into the country, be it film or any other digital product. Who pays those tariffs? The consumer, the American consumer.

Former New Zealand Prime Minister Sir John Key has expressed support for Trump as a businessperson and good for the economy. When it comes to the New Zealand film industry he is more circumspect.

Trump's Tariff Strategy:

Key is concerned with Trump’s long-term economic strategy, when Trump thinks tariffs could replace federal income tax. Referring to Trump’s book “The Art of the Deal,” in any negotiation you must have leverage to get the outcome you want. High tariffs is the leverage Trump uses to gain concessions.

Impact on New Zealand Film:

Market reactions to Trump's tariff announcements, caused market instability followed by a recovery, indicating Wall Street's belief that broad tariffs are unlikely.

Key expressed concern about Trump's "100% tariff" on foreign films, which could negatively impact New Zealand's film industry. He also acknowledges the complexity of applying such tariffs given the multinational nature of film production.

New Zealand's Response:

New Zealand's government officials, including Arts, Culture and Heritage Minister Paul Goldsmith and Prime Minister Christopher Luxon, expressed concern about the potential impact of US tariffs on the New Zealand film industry.

Key recognizes the potential for tariffs to create some American manufacturing jobs but also warns that tariffs could slow the US economy and cause greater job losses.

New Zealand continues to pursue a free trade agreement with India, as a way to diversify its trade relationships.

Key's Endorsement of Trump: 

Key maintains his pre-election support for Trump, citing his pro-market policies, deregulation, and lower taxes; believing that any tariff chaos will be short term.

Tariff Implications: 

Key acknowledges that while some aspects of global trade may be unfair, tariffs are generally detrimental to global growth and consumers. He recognises the complexities of how tariffs are applied, and how they interact with other sales taxes.

Trump's Trade Policies and Trade Deficit: 

During Trump's first term, the US trade deficit reached a record high of US$891 billion in December 2019.His tariffs on Chinese goods led to a slowdown in China's economy, but also significantly reduced American exports to China (nearly 50% decline). 1  

Sources and related content. Chris Keall NZ Herald 6 May 2025.

My Comment

Sir John Key understands the complexities and impact of Trump’s tariffs on the film industry. Whatever your view, Trump continues to turn the world upside down, even in little New Zealand.