Industry experts, including renowned South African movie producer Anant Singh, agree that US President Donald Trump’s proposed 100% tariffs on movies shot outside of America are unlikely to lure US studios away from Cape Town as a shooting location.
TechCentral reported on Wednesday that the cost of filming in Cape Town will still be attractive to foreign producers, even if Trump’s steep tariffs are imposed.
However, according to the Western Cape department of economic development & tourism, proposals tabled by US filmmakers, if implemented, could lead to studios and production houses returning more of their operations to US soil.
“If the US, on the recommendation of actor Jon Voight – President Trump’s appointed special ambassador to Hollywood – introduces federal tax incentives and infrastructure subsidies for its filmmakers, this will result in the Western Cape’s film sector being less attractive,” the department said in response to e-mailed questions from TechCentral.
According to the department, lower labour costs make South Africa an attractive shooting location. Western Cape government data shows that lighting technicians, makeup artists and set designers are 127-150% more cost effective in South Africa than the US. The dollar’s relative strength to the rand and the lower cost of living in South Africa are a major contributor to this dynamic – but these are not the only factors at play.
Incentives
The South African government offers industry incentives, including cash rebates of up to 25% — or even 30% if filming and post-production are both done locally. This has led to considerable growth for the sector in the past decade. Cape Town Film Studios alone has injected R21-billion into the economy and supported more than 98 000 jobs over the last 10 years. In the 2023/2024 financial year, the Cape Town Film Permit Office issued 4 757 permits, 22% more than the previous year.
Other industry incentives include the City of Cape Town’s freeze on filming-permit fees for the fourth year running as well as free metro police support for open-air shoots.
Read: Lights, camera, tariffs: Trump declares war on foreign flicks
Certain US states offer tax incentives of their own to lure productions to their territories. These include Georgia, where the recently released Marvel film Thunderbolts was shot. These smaller states are capitalising on the fact that filming costs are higher in mainline regions including New York and Los Angeles, where Hollywood is located.
The introduction of federal incentives would make it cheaper to film across the entire US, making destinations like South Africa – as well as others such as the UK and Australia – less competitive.
Exactly how Trump’s tariffs are going to be implemented remains open to question. Beyond the tariff itself, US filmmakers choosing to use locations like Cape Town to shoot their content could face additional penalties on distribution rights, licensing fees and charges on box office revenues on importation into the US. How these additional charges weigh up against the incentives offered by the South African government is as yet undeterminable, said the Western Cape.
“This would require a cost-benefit analysis of the cost of filming, licensing and distributing in the relatively more expensive US, versus partial production in the more cost-effective Western Cape. A more accurate analysis will only be possible once more information is made available by the US department of commerce and the US Trade Representative,” it said.
Read: MTN Group CEO warns of impact from Trump tariff shock
If the US implements competitive federal incentives, the negative impact on the South African economy would extend beyond the film industry. Between November 2023 and August 2024, international crews booked more than 59 000 hotel stays to the tune of R148-million across South Africa. Other sectors affected include transport, catering, set construction, costume design, makeup artistry, equipment hire and security, said the department.
“Further research and close monitoring will be essential as the full impact of the proposed tariffs will only become clear once the official announcements are made by the US government,” it said. – © 2025 NewsCentral Media
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