The proposal by President Donald Trump to impose a full tariff on movies made overseas sparked widespread astonishment and incredulity throughout Europe‘s film sector.
As a cinephile, I’ve been left in the dark about how exactly these production taxes, recently announced over the weekend via social media, will be implemented, and which films might be targeted by these tariffs. However, there’s a growing sense of unease that if they do come into effect, Trump’s recent decisions could cause significant disruption, even possibly leading to the collapse of the global film industry. This industry thrives on a complex web of international incentives and foreign locations, and any changes could have a devastating impact.
Films ranging from independent productions on a tight budget to big-studio blockbusters are being produced in various countries such as the UK, France, Germany, Hungary, and so on. Interestingly, Mel Gibson, one of three Hollywood ambassadors appointed by Trump (the other two being Sylvester Stallone and Jon Voight), is now planning to film his “Passion of the Christ” sequel in Italy.
The reaction in the U.K., where so many U.S. movies are filming, has been the most vitriolic.
As a film enthusiast, I find this assertion puzzling. It seems to suggest that American movies must be filmed within the United States. However, films like ‘Harry Potter,’ ‘Lord of the Rings,’ ‘Schindler’s List,’ ‘Mission Impossible,’ ‘Gladiator,’ ‘The Aviator,’ and countless others are U.S productions that were shot overseas for logical reasons. Are we now bound to film these stories domestically? This seems a nonsensical decree devoid of insight into the art of storytelling or creative instincts.
A different British manufacturer commented, “Even jobless Americans are finding this absurd — these are individuals whose careers were severely impacted due to manufacturing shifting to Europe.
A London producer echoes his sentiments: “If this plan succeeds, it could wipe out our industry, but shutting down production isn’t an option,” he stated. “When does it take effect? What about films already in pre-production, currently shooting or in post-production? Would you simply double their costs? Nothing has been considered here. So, I believe the sensible approach is: Let’s wait and understand what this entails, let’s scrutinize the details.
Due to a resolution of strikes between Hollywood and actors/screenwriters unions, production in the U.S. has decreased by 40%. Major film projects like the upcoming “Avengers” movies have moved from the U.S. to cities in the U.K. and Europe. Incentives play a part in this shift, but states like Georgia and New York offer competitive film funding that matches or exceeds foreign countries’ offers. Lobbying groups within Hollywood, such as the Motion Picture Association, have advocated for a federal film incentive to attract more productions back, but it seems President Trump is choosing to use tariffs instead.
As a movie buff myself, I’ve heard whispers that I, along with my manager, Steven Paul, have been engaging in discussions with different guilds. The aim is to gather insights about the current production landscape so I can provide informed advice to the president on how we can reignite filming activities across the United States.
On Sunday, Trump’s proposition was circulating among Hollywood execs, who gathered for urgent discussions in an attempt to clarify a plan that remains somewhat unclear.
Prior to the announcement of President Trump’s plan, Gaeten Bruel – the newly appointed president of France’s National Film Board and a former head of French Cultural Services in the U.S. – expressed concerns about potential attacks on cinema and audiovisual media by the Trump administration. He stated that such actions would negatively impact everyone, starting with the U.S. industry itself.
America’s output makes up a significant portion of the entertainment people in Europe, especially France, consume, accounting for about two-thirds of what they take in.
A notable figure from France who oversees a prestigious festival stated, “In essence, films are non-taxable services. This issue could potentially lead to legal disputes that might last for months.” Meanwhile, a producer who distributes popular French movies in the U.S., one of our main markets, commented, “We don’t deal in tangible goods; we provide a service. I struggle to see how it can be taxed… At this point, it’s unclear exactly what is being discussed, and what specific matters are involved. The situation remains quite vague, and with Trump, things can shift rapidly every day.
In Italy, Rome’s Cinecitta Studios, where Gibson’s “The Resurrection of Christ” will be filmed in September, responded calmly to the news.
Cinecittà CEO, Manuela Cacciamani, stated that they are closely watching significant markets such as the U.S. She believes that for sectors like the cultural industry, particularly the audiovisual sector, interactions between nations should be mutually beneficial and cyclical.
Cacciamani noted that American productions greatly value the tax incentives we offer, but more importantly, they appreciate the unique environment here – our stunning landscapes, pleasant climate, rich culture, distinctive style, and deep-rooted knowledge. This is why they consistently select Italy over other locations to ensure a quality they can’t find elsewhere.
Onlookers are waiting to see if Trump follows through on his threats, or if they move forward once he’s made a flurry of news headlines.
Or:
People are hesitating to act until they see whether Trump carries out his threats, or if they proceed after creating a series of headlines.
Marco Valerio Pugini, an Italian line producer working on the set of Ridley Scott’s post-apocalyptic movie ‘The Dog Stars’ in Northern Italy, stated that we should be patient and observe Trump’s next actions. It’s similar to playing chess – we don’t know where events will lead us.
Pugini mentioned that the entertainment world functions like a global community, as he recently worked on a Korean production airing on Netflix. He acknowledged it can get a little convoluted.
However, it seems that American film studios might persist in filming overseas for picturesque backdrops. It’s unlikely they’ll switch the setting of James Bond to Detroit, as suggested.
Professionals in the Middle East’s entertainment sector, such as executives and filmmakers, are similarly concerned about how tariffs might affect their operations. Hans Fraikin, a Dubai-based media consultant and former head of the Abu Dhabi Film Commission, as well as the founding commissioner of the Quebec Film and TV Council, expressed this concern, stating that “the entire global production services industry is being impacted by this.
He continued, “They’re unsure about their direction at the moment.” He mentioned that he’s collaborating with an Indian state that aims to construct a Film Studio City complete with soundstages. Clearly, they’re relying on Hollywood productions heavily. As of now, I haven’t discussed this with them. The question is, how will they respond when faced with this challenge?
According to Fraikin’s analysis, Trump’s tariffs could have severe repercussions within the U.S. He questions whether shifting all shooting operations domestically would significantly create jobs in the long term due to increased costs. Instead, he suggests that studios might heavily rely on artificial intelligence as a result.
In the independent film industry, some agents are dismissing Trump’s threats as just another outburst. As one influential sales agent based in Madrid put it, “We need to verify if these tariffs will indeed be imposed, when they’ll be implemented, and under what conditions. There’s currently no set date for these tariffs, nor have the specific rules been outlined.” He further commented that “American firms could suffer the most in this trade dispute, given that sales of American films in Europe account for a significant portion.
The representative proposed a scenario where nations retaliate by implementing a 100% reciprocal tariff on U.S.-produced movies, potentially leading them to prefer European films over Hollywood productions. This could result in an expansion of European distributors’ share of European films and a boost in the creation and distribution of local content, according to the representative.
In the Czech Republic, Film Commissioner Pavlína Žipková expressed that the global aspect of film production, which utilizes diverse locations, talents from around the world, and financial aid, has fostered stronger cultural connections.
Speaking about the long-standing practice of American film studios shooting movies in Europe since the 1950s, Žipková stated that this tradition has consistently been mutually beneficial for both continents. However, Trump’s recent remarks have left more questions unanswered than clarified.
Similar to numerous professionals in the European film industry, Žipková is preparing herself for the upcoming Cannes event. This annual gathering not only facilitates film sales but also offers an opportunity to renew connections with counterparts from the United States and other significant marketplaces.
“It doesn’t slow us down,” Žipková said.
Jamie Lang, Naman Ramachandran and Leo Barraclough contributed to this report.
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2025-05-05 15:47