logo
SA's film success faces a Trump-sized threat

SA's film success faces a Trump-sized threat

The Citizen06-05-2025

A 100% US tax on foreign films could endanger local productions and wipe out SA's competitive edge in global cinema.
An area of the South African economy which has defied the prophets of doom – and has burnished the country's reputation – is the film production industry.
Apart from stunning locations, South Africa has a wealth of local cinematic talent, from actors to behind-the-cameras techs… and, from the point of view of foreign film-makers, our rand's weakness means this country is hugely enticing as an affordable movie location.
But that may all change drastically. We say may because we – and billions across the world – are hanging on the whims of the White House in Washington.
President Donald Trump's latest foray in his campaign to 'Make America Great Again' has been to lash out at the apparent imbalance in cinema production by slapping 100% tax on imported movies.
Never mind that the US really is the proverbial 500-pound gorilla in the movie-making business, exporting films valued at more than $120 billion (about R2.1 trillion) annually, a fraction of what it imports from other countries.
The SA production industry is worried, though. If implemented, Trump's tariff would apply to locally made films, potentially even productions filmed here, and series sold into the US.
ALSO READ: Brenda Ngxoli stars in new rom-com: 'A Scam Called Love'
That market remains one of the most lucrative globally for international distribution, especially for English-language content.
They have a reason to be worried, because Trump says the levy would apply to 'any and all Movies coming into our Country that are produced in Foreign Lands'.
That could discount the currency advantage we have and make it prohibitively expensive for foreign companies to come here to shoot.
It goes without saying that thousands of jobs in the movie production sector itself – and the ancillary businesses which rely on it – will be at risk.
Let's hope that Trump has another rush of blood to the head and changes his mind again.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Markets remain nervous on Isreal-Iran conflict
Markets remain nervous on Isreal-Iran conflict

IOL News

time18 minutes ago

  • IOL News

Markets remain nervous on Isreal-Iran conflict

Smoke rises above buildings in Tehran following an Israeli strike on the sixth day of fighting between Iran and Israel. The nervous and volatile environment due to the President Trump's s chaotic tariff policies, the Middle East conflicts and other uncertainties in global markets, like the oil price, may led to unfounded signals that any cuts in the next several months could points towards the Fed is worried about a downturn in the economy, rather than lowering rates in line with lower inflation that falls within the Fed's set target. Image: AFP The US Federal Reserve keeps interest rates unchanged. As was expected, the US Federal Reserve's FOMC during its meeting of June 17–18, 2025 has maintained the federal funds rate at 4.25%–4.50%. The FOMC, however, has indicated they will lower its bank rate by another two twenty-five‑basis‑point rate cuts later in 2025, as was released in their report last Wednesday. The abstaining of lowering rates can also be seen as the upside risk over escalating clashes between Israel and Iran. This is the fourth meeting in a row that the FOMC kept its short-term rate unchanged. The nervous and volatile environment due to the President Trump's s chaotic tariff policies, the Middle East conflicts and other uncertainties in global markets, like the oil price, may led to unfounded signals that any cuts in the next several months could points towards the Fed is worried about a downturn in the economy, rather than lowering rates in line with lower inflation that falls within the Fed's set target. 'We want interest rates to come down because inflation pressures are receding… not because the economy is rolling over and in need of Fed stimulus,' said Greg McBride, chief financial analyst at Bankrate. The interest rate decision led to US Stocks contracting last week. The Dow Jones Industrial Average traded down last week by 0.7%, losing 1.7% since the first attack of Israelis on Iran the previous Friday. The S&P500 lost last week 1.3% and the Nasdaq Composite, weighed down by tech shares, traded lower by 1.1%. The JSE and the rand follow the global trend. The JSE and the Rand continued to follow global financial markets last week. This despite the news that South Africa's annual inflation rate for May was 2.8%. This is the same as the annual rate recorded for April 2025 and the third consecutive month where the annual increase in the CPI came in lower than the 'new' proposed target of 3.0%. This news did however prevent equity prices, and the Rand did not lose a great amount last week. The ALSI ended the week by a mere 0.6% and the Rand/$ exchange rate closed Friday only fifty-two cents weaker at R18.00/$. The gold price lost $63 per ounce last week, closing Friday, on $3 369. The prices for platinum increased last week by $60 to $1 268. Prospects for fuel prices in July are not good. The Brent oil price closed Friday at $76.64 per barrel. It increased $2.47/per barrel last week. Given the weaker rand by Thursday last week, the petrol price was under-recovered by thirty-five cents per liter and that for diesel under-recovered by fifty-six cents per liter. It is expected that the prices for these two fuel commodities to increase more during the rest of the month. Prospects for this coming week The US Fed chairperson Gerome Powel testimony in front of the US senate on Wednesday will be of importance this coming week. Investors await the release of the final estimate of the US GDP economic growth rate on Thursday. It is expected that the world's biggest economy has grown by 2.4% during Q1 2025. This is 0.2% lower than the 2.6% during Q4 2024. The announcement on Friday of the US private consumption and spending figures during May 2025 will also be of note. STATSSA will announce South Africa's annual producer inflation rate for May on Thursday. It is expected that the annual increase in the CPI during May 2025 was 0.8% and much higher than the annual rate of 0.5% in April 2025. The FNB/BER Consumer Confidence Index for South Africa for Q2 2025 will be announced also on Thursday. Consumer confidence contracted to -20 in the first quarter of 2025. This was the lowest value since Q2 2023 and was down from -6 in the previous period. It is expected that the index will improve to -10 during Q2, still indicating that consumers feel negative about the current economic and welfare situation they are in. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. Image: Supplied

UN Security Council meets on Iran as Russia, China push for a ceasefire
UN Security Council meets on Iran as Russia, China push for a ceasefire

Daily Maverick

time23 minutes ago

  • Daily Maverick

UN Security Council meets on Iran as Russia, China push for a ceasefire

'The bombing of Iranian nuclear facilities by the United States marks a perilous turn,' U.N. Secretary-General Antonio Guterres told the Security Council on Sunday. 'We must act – immediately and decisively – to halt the fighting and return to serious, sustained negotiations on the Iran nuclear programme.' The world awaited Iran's response on Sunday after President Donald Trump said the U.S. had 'obliterated' Tehran's key nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. Russia and China condemned the U.S. strikes. 'Peace in the Middle East cannot be achieved by the use of force,' said China's U.N. Ambassador Fu Cong. 'Diplomatic means to address the Iranian nuclear issue haven't been exhausted, and there's still hope for a peaceful solution.' But acting U.S. Ambassador to the U.N. Dorothy Shea told the council the time had come for Washington to act decisively, urging the Security Council to call upon Iran to end its effort to eradicate Israel and terminate its drive for nuclear weapons. 'Iran long obfuscated its nuclear weapons program and stonewalled our good-faith efforts in recent negotiations,' she said. 'The Iranian regime cannot have a nuclear weapon.' Russia's U.N. Ambassador Vassily Nebenzia recalled former U.S. Secretary of State Colin Powell making the case at the U.N. Security Council in 2003 that Iraqi President Saddam Hussein constituted an imminent danger to the world because of the country's stockpiles of chemical and biological weapons. 'Again we're being asked to believe the U.S.'s fairy tales, to once again inflict suffering on millions of people living in the Middle East. This cements our conviction that history has taught our U.S. colleagues nothing,' he said. COST OF INACTION 'CATASTROPHIC' Iran requested the U.N. Security Council meeting on Sunday. Iran's U.N. Ambassador Amir Saeid Iravani accused Israel and the U.S. of destroying diplomacy, said all U.S. allegations are unfounded and that the nuclear non-proliferation treaty 'has been manipulated into a political weapon.' 'Instead of guaranteeing parties' legitimate rights to peaceful nuclear energy, it has been exploited as a pretext for aggression and unlawful action that jeopardize the supreme interests of my country,' Iravani told the council. Israel's U.N. Ambassador Danny Danon praised the U.S. for taking action against Iran, saying: 'This is what the last line of defense looks like when every other line has failed.' He accused Iran of using negotiations over its nuclear programme as camouflage to buy time to build missiles and enrich uranium. 'The cost of inaction would have been catastrophic. A nuclear Iran would have been a death sentence just as much for you as it would have been for us,' he told the council. It was not immediately clear when the council could vote on the draft resolution. Russia, China and Pakistan have asked council members to share their comments by Monday evening. A resolution needs at least nine votes in favor and no vetoes by the U.S., France, Britain, Russia or China to pass. The U.S. is likely to oppose the draft resolution, seen by Reuters, which also condemns attacks on Iran's nuclear sites and facilities. The text does not name the United States or Israel. 'Military action alone cannot bring a durable solution to concerns about Iran's nuclear program,' Britain's U.N. Ambassador Barbara Woodward told the council. 'We urge Iran now to show restraint, and we urge all parties to return to the negotiating table and find a diplomatic solution which stops further escalation and brings this crisis to an end.' U.N. nuclear watchdog chief Rafael Grossi said that while craters were visible at Iran's enrichment site buried into a mountain at Fordow, 'no one – including the IAEA – is in a position to assess the underground damage.' Grossi told the Security Council that entrances to tunnels used for the storage of enriched material appear to have been hit at Iran's sprawling Isfahan nuclear complex, while the fuel enrichment plant at Natanz has been struck again. 'Iran has informed the IAEA there has been no increase in off-site radiation levels at all three sites,' said Grossi, who heads the International Atomic Energy Agency.

SA can't go rogue any longer
SA can't go rogue any longer

The Citizen

time30 minutes ago

  • The Citizen

SA can't go rogue any longer

SA needs to forsake revolutionary affiliations and reset its relations with the Western democracies. South Africa's solidarity with a ragbag of international terror organisations and rogue states in the Middle East is not returning the benefits the ANC hoped for. Instead of this alliance of outlaws being the next big thing in geopolitics, it's imploding. Over the past 20 months, the Iranian orchestrated 'axis of resistance' – Hamas in Gaza, Hezbollah in Lebanon, the Assad regime in Syria and the Houthi in Yemen – that for decades kept the region ablaze in pursuit of wiping Israel from the face of the earth, has been virtually obliterated. Now it is Iran's turn. Over the course of just a week, Israel has reduced Iran's feared military, terror and repressive apparatus to ruins. The Jewish state has control of Iranian skies, has subverted the banking system and has been so successful at assassinating Iran's military and nuclear leadership elite that cadre promotion, rather than being coveted, is now a death sentence. The regime held a single negotiating card. Its most important nuclear enrichment plant, at the mountain redoubt of Fordow, appeared untouchable. That was literally trumped when the US president on Saturday dropped bunker-busting bombs on three Iranian nuclear installations. ALSO READ: US joins Israel-Iran conflict with overnight bombing campaign It's a dangerous escalation. But, then again, Trump has never seen a bandwagon that he doesn't yearn to take charge of. Following Trump's decision, the latest Middle East developments will worsen SA's already fraught diplomatic relationship with the US. When President Cyril Ramaphosa attended the G7 summit in Canada, the meeting he had announced with Trump did not materialise. Whether this was a calculated snub by Trump or, as the SA delegation insists, simply because of his early departure to deal with the conflict in Iran, remains to be seen. It is nevertheless curious that not a word was exchanged between the two men, especially given the expectations raised by what Ramaphosa had hailed as a triumphant visit to the White House. ALSO READ: Did the US strikes succeed, and how will Iran respond? The G7 summit shows how fringe our Middle East foreign policy has become. In spite of waning support by some member countries for Israel's actions in Gaza, especially from some EU countries, the summit's position on the Israel-Iran conflict was remarkably unambiguous. 'Israel,' the G7 statement read, 'has the right to defend itself and we reiterate our support for the security of Israel. Iran is the principal source of regional instability and terror and it must never be allowed to obtain a nuclear weapon.' This is at odds with SA's stance. It is with Iran itself that SA has developed the warmest relationship. SA facilitated Iran's entry into Brics. There have been inter-ministerial engagements to strengthen political, economic and cultural cooperation. They worked together on SA's International Court of Justice case accusing Israel of genocide and there are claims, as yet unproven, that Iran rewarded the ANC by bailing it out with a few hundred million rands when the party almost went bankrupt last year. All this put SA on a conflict course with the US. SA's response to Trump's order cutting off aid has been to fixate on concerns regarding land seizures and race-based discrimination. It has ignored US displeasure over 'egregious actions' in the international arena. As the order puts it, 'South Africa has taken aggressive positions towards the United States and its allies, including accusing Israel, not Hamas, of genocide.' The ANC has been unwilling to address these issues. Serendipitously for SA's long-term interests, the linchpin around which the 'axis of resistance' turned is on course to being neutralised by Israel. This will reshape the Middle East and afford SA an opportunity the ANC must seize – forsake revolutionary affiliations and reset relations with the Western democracies. NOW READ: Apartheid then, apartheid now: Israel's aggression is no different

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store