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.
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.