By Patience Chat Moses
The global entertainment industry is abuzz with a potential shift: The United States proposes a 100% tariff on all imported movies. This move, seemingly aimed at revitalising Hollywood and safeguarding national interests, has sent ripples of concern throughout the international filmmaking community. While the full implications remain unclear, the proposed tariff could alter the landscape of film production, distribution, and consumption worldwide, with significant ramifications for Nigeria’s Nollywood and its broader entertainment economy.
The reason behind this potential tariff stems from a desire to bolster domestic film production in the United States. Proponents argue that foreign tax incentives lure production overseas, undermining American jobs and the industry’s overall health. This sentiment, amplified by concerns about “messaging and propaganda” embedded in foreign films, has led to the authorisation of a process to impose this hefty levy by US President Donald Trump.
In the global realm, immediately the proposal was announced, shares in US media and entertainment companies fell, with Netflix and Warner Bros down by about 3%, and Paramount Global and Walt Disney Co. down by 2%.
Is Nollywood Under Threat?
For Nollywood, a vibrant force in African cinema, the proposed US tariff presents a unique set of challenges and potential shifts:
Reduced International Exposure: While the US might not be Nollywood’s primary revenue stream, the tariff could hinder its presence at international film festivals and limit distribution to theatres abroad, potentially impacting its global credibility and recognition.
Discouraging International Investment: The tariff might deter international streaming platforms from investing in African content, further restricting the global audience for Nollywood stories.
Increased Focus on Local and Regional Markets: Faced with potential barriers in the US market, Nollywood might need to intensify its focus on intra-African collaborations and distribution networks to ensure growth and sustainability. This could foster a stronger pan-African cinema.
Opportunity for Diversification: The situation could also spur Nollywood to explore alternative international markets and strengthen its digital distribution strategies to reach global audiences directly.
Potential for Increased Local Demand: If international films become more expensive for Nigerian consumers due to global ripple effects of the US tariff, it could inadvertently boost demand for locally produced Nollywood content.
Industry analysts argue that the US tariff, however, introduces a layer of uncertainty. While direct revenue from the US market for Nollywood might be limited, the interconnected nature of the global film industry means that any disruption could have indirect consequences. Reduced international collaboration, a more segmented global market, and potential retaliatory tariffs could all impact Nigeria’s entertainment economy to some degree.
On the other hand, this development they added could catalyse Nigeria to further invest in its local infrastructure, talent development, and distribution networks. Strengthening intra-African collaborations and exploring new international partnerships could mitigate the risks and potentially unlock new avenues for growth within the continent and beyond.