Todd McClay: Trade Minister on Trump's threats of 100% tariffs on internationally made films

The Trade Minister says uncertainty around Donald Trump's tariffs is most concerning, following threats he'll impose a 100% tariff on all movies made outside the US. 

The US President didn't confirm when or how it could be enacted in a post on social media, which followed an initial threat on foreign-produced movies in May. 

Todd McClay told Mike Hosking he was in Malaysia last week with other trade ministers, who are all dealing with the rolling wall of announcements with no clarity. 

He says Trump's social media announcements are creating a lot of uncertainty, and Hollywood won't know what's going on. 

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Episode Transcript

Speaker 1 (00:00):
What do we make of the Trump idea of terrorists

(00:01):
on movies he floated in a while back. Of course,
it came to nothing until yesterday when he decided one
hundred percent was a good number. Tod mcclay's the trade
Minister's back with us, Todd morning. Now, this must make
your life hell, mustn't it? Given this is just all
of these things are constantly moving targets.

Speaker 2 (00:16):
Yeah, it's the uncertainty that's most challenging, not only for
New Zealand exporters, but I was in Malaysia last week
with a lot of other trade ministers. They are all
dealing with exactly the same thing. You know, a rolling
mall of announcements, some of which actually have substance with
behind them. We've seen an announcement of a soft wood
timber and so on into the US. You just hit

(00:36):
with for New Zealand, a ten percent tariff for Canada
where they get most of it from to build their houses.
Fifty seven percent, so very high. But ultimately we also
see these truth social announcements which aren't really announcements, and
it's creating great uncertainty. Hollywood will not know what's going on.
But you know, our film industry to a right to
be concerned.

Speaker 1 (00:56):
Does he have a point? This is Trump and this
whole subsidy thing is an artificial market and it is
a race to the bottom. And therefore, if you take
his view of the world, he's right, isn't.

Speaker 2 (01:07):
He Well, well, I mean American States themselves do it,
and it's a very competitive industry. But if you think
about how a film is made, you know, in some
countries the whole film will be made there. But if
you're doing something and I don't know Auckland, a film
that's got views of Auckland and a door Paris with
the Eiffel Tower, you don't build a new one in
a studio in Hollywood. You go out and do some

(01:27):
of the filming there and you come back. The second
thing that I think is being missed in the wider
discussion about these tariffs is the US makes more money
from the world selling films to them then the rest
of US get from helping them make better quality films.
And so ultimately, this is the first time the presents
announced anything in services. Every other tariff has been on
good to tangible, good to meet the dairy, the stuff

(01:49):
like that, right, and it's not clear how this will work.

Speaker 1 (01:53):
Yeah, how would you kell? I mean, if you were
his advisor and a bit of it was made in
New Zealand, a bit of it on Ireland and some
of it in America, how would you slice that up?

Speaker 2 (02:04):
Well, that's the bit if you think about the first
announcement he made around you know, the very first tariffs
for the whole world. It was based upon he said,
different tariff rates, and it wasn't. They just had to
come up with a formula. When he put to US
from ten percent to fifteen percent, it was as arbitrary
as every country in the world that had a trade
surplus last year against the US is fifteen percent or more.

(02:26):
And so you know, my advice, if I was an
advisor to the president, is a better way to shore
up the US economy and to drive investment in growth.
But he did a campaign on tariffs and he is
doing what he said he was going to do. From
New Zealand point of view. For the film industry as
an example, though very competitive, have a very very high reputation.
I've got a call later today with a number of

(02:47):
producers and filmmakers and actors, predominantly New Zealanders, but are
very involved in Hollywood to see what they think, what
the studios are saying. But in the meantime they're telling
me films are still going to be made here out
of the US, respective of what happens there. And about
two thirds of all of the movie industry and filming
as in New Zealand comes from the rest of the world,
not the US, so look that resilient. They'll still do well.

(03:09):
We're just going to work out what this means and
look for ways that are non financial to help our
film set there because it is important to New Zealand.

Speaker 1 (03:16):
Why I've got your India FTA.

Speaker 2 (03:18):
Any movement, Yes, there is a movement there. We're making
very very good progress, although it's challenging in the areas.
We just had our third formal round in New Zealand
two weeks ago. I would say maybe sixty percent of
the agreement is done and we've finalized it, but of
course the hard stuff about you know, the goods we
want to sell them and vice versa comes towards the end.

(03:40):
So we're making really good progress. In part that's because
the Prime Minister and I have put a lot of
effort into building that relationship. But you know, consequently, because
of what America is doing, other parts of the world
are keen to do deals and give certainty. So, you know,
we said we would get it done before the election
this term of parliament, we're going to do it.

Speaker 1 (03:58):
Good stop, Nice to catch up Tom's Who's the Tribe Minister.

Speaker 2 (04:01):
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