This is the real crisis that the film industry is up against. Former President Donald Trump has already issued the Department of Commerce and the Office of the US Trade Representative to have the authority to impose an outrageous 100% tariff on every film made outside of the United States. We expected it, as it was announced on Trump’s Truth Social platform. It has generated extraordinary alarm in the international film community, particularly with the Cannes Film Festival opening May 13.
As Trump sees it, other countries are luring filmmakers and studios to locate abroad. He believes they’ve gone about it all the wrong way through incentives. He expressed his frustration, stating, “are offering all sorts of incentives to draw” filmmakers. He further emphasized the urgency of the situation, declaring that “The Movie Industry in America is DYING a very fast death.” Feeling this has struck a chord loud and clear within the industry, generating a lively discussion at Cannes.
The context to Trump’s announcement is an alarming drop-off of European film representation in US screens. News from the European Audiovisual Observatory indicates a 93% de-risking of ticket sales for European movies. In the process, they plummeted from roughly 33 million in 2017 to a mere 4.8 million in 2023. This report compared data across 36 European countries, including EU member states and neighboring European non-EU countries.
The ramifications of Trump’s tariff threats were a central topic at the Cannes Film Festival, as many industry professionals voiced their concerns over the potential impact on international collaboration. One particularly powerful representative of the EU film industry hinted at profound fears. They worry they’ll get snared in wider trade talks between Brussels and Washington. They stated, “We don’t want to be part of the overall negotiation on tariffs between Europeans and Americans.”
The Congresswoman highlighted the dangers that can arise when cultural elements are overlooked. This is doubly true when it comes to legislation supporting digital first initiatives. This is particularly timely, as there is impending pressure upon filmmakers to fulfill requirements to fund works made by EU member countries.
Big-budget productions, such as “Mission: Impossible – The Final Reckoning,” often incorporate shooting locations from various countries, including the US. This widespread practice highlights the truly global and interconnected nature of the film industry. Trump’s rhetoric does lead to questions about the future viability of global film partnerships should punitive tariffs come to pass.
In response to his critics, Trump insisted that foreign competition poses a national security threat, framing it as “a concerted effort by other Nations and, therefore, a National Security threat.” He said that these kinds of moves are both a propaganda/ messaging tool.
André Buytaers, external advisor to the industry of the EU, sounded the alarm against restricting European filmmakers in these ridiculous terms. He lamented their failure to make movies anywhere in the world except for the United States. He stated, “If Europeans can no longer make films outside the US, it becomes absurd.”
… the film industry continues to sail in stormy seas. Now, industry stakeholders are reeling and considering how these tariffs may dramatically change the future of global cinema. Higher tariffs on foreign films would only deepen today’s daunting challenges in distribution and audience attraction and engagement. This already dire picture haunts the shrinking set of screens for European cinema.
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