First films, then forests? Trump launches another tariff while NZ trade minister responds to film threat

Tuesday, 30 September 2025

As Trade Minister Todd McClay responded to threats of a “100% tariff” on films, US President Donald Trump was confirming tariffs of up to 25% on imported wood products.

The double-blow to two key New Zealand industries was making it increasingly hard to do business in the US, McClay said, but he said both industries would be able to continue - and would likely be able to continue trading with the US even if the tariffs do hit them.

McClay was speaking to reporters at Wellington Airport on Tuesday about Trump’s promise to tax foreign-made films, when Trump launched another surprise tariff. As McClay spoke to reporters about the film tariffs, Trump was signing an order to introduce timber tariffs.

At this stage, the film tariffs remain just a threat - or idea - from Trump.

On Monday night, Trump posted saying he would introduce a “100% Tariff on any and all movies that are made outside of the United States”.

McClay said it was unclear how that would work, and therefore what the impact for New Zealand filmmakers would be.

But while the threat of a massive film tariff hung over the industry, McClay noted there was an imminent threat of tariffs for the forestry and wood processing industry.

At the time, he said sources in the US had informed him Trump would make an announcement about a softwood tariff “sometime in the near future”. As it happened, Trump was making that announcement at the exact same time - and signed a proclamation at about 2pm New Zealand time.

Trump’s order would see tariffs of between 10% and 25% on imported timber products. US importers would need to pay 10% for foreign softwood lumber and timber, and 25% for foreign timber furniture.

Those tariffs would come into force on October 14, with Trump promising further increases to the tax next year - with some items going up to 50%.

New Zealand does export furniture to the US.

McClay said New Zealand companies played “an important part” of the timber industry in the US, making products needed to build houses there.

“There are a number of companies who have put a lot of effort into the US market and have grown, they’ve grown important businesses there,” he said.

He said the universal tariffs imposed by the US, such as its tariffs of at least 10% on every import - or 15% for New Zealand - had not hurt most New Zealand exporters.

“The prices are going up for us consumers. But as you’ve seen in some other areas, we’re selling more to the US even with the tariffs in place.

“But, as with many of these things, it is the uncertainty and changing nature that’s making it hard for New Zealand exporters,” he said.

He said many exporters were also looking to invest in other markets - which made sense given uncertainty in the US.

For timer and forestry, he said the UAE and European Union - which trade agreement have come into force - were good options.

“Many of our exporters have already diversified. Yes, they would like to be selling more in the US, in some cases they are. But there are still lots of opportunities,” he said.

But uncertainty is a major issue for industries more reliant on the US, such as film.

Film industry leaders were hopeful the tariff wouldn’t eventuate, given it was unclear how it would work. But if it did happen, then Irene Gardiner, president of Screen Producers NZ, said it would be “absolutely devastating for New Zealand”.

She said the American screen industry didn’t support the move either.

“[They] see it as being pretty ruinous to the US screen industry,” she said.

McClay said officials were meeting with American counterparts to get clarity about these tariffs, while he planned to meet with film and timber exporters to discuss impacts to their industries.

Trump had not publicly provide any details for how that film tariff would work.