Industry of filmmaking expresses apprehension over potential embroilment in US-EU tariff dispute

Cinema Battle Brewing in Transatlantic Trade Talks

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The European film industry is brace-and-brace for a potential collision, fearing that hard-won regulations mandating European content quotas for streaming platforms could be at risk amid escalating transatlantic trade negotiations. The culprit? A threats from U.S. President Donald Trump to impose tariffs on movies produced outside the States.

The movie madness won't bode well if it lands on the bargaining table in ongoing trade squabbles between Brussels and Washington, according to a key EU film industry rep. Juliette Prissard, General Delegate of Eurocinema, shared this sentiment with our publication, adding: "We don't want to be part of the overall negotiation on tariffs between Europeans and Americans." Prissard warns that there's always a chance culture could take a backseat to EU legislation such as that on digital.

In a flurry Sunday night on his Truth Social platform, Trump declared he's green lighted the Department of Commerce and the Office of the U.S. Trade Representative to slap a 100% tariff "on any and all movies coming into our Country that are produced in foreign lands."

"The Movie Industry in America is dying a fast death," he penned, grumbling about other countries offering incentives to lure filmmakers and studios away from the States. "This is a coordinated effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!"

A tangible plan on how any such tariff on international productions could be implemented remains unclear. It's common for both big and small films to incorporate production both domestically and internationally. Blockbusters such as the upcoming "Mission: Impossible - Last Call," for instance, are shot around the world.

The European Commission preserved silence on the statement Monday, offering only that it would await concrete actions before reacting.

"If Europeans can no longer make films outside the States, it becomes absurd," André Buytaers, president of Pro Spere, the Belgian federation of audiovisual and film creators and performers, told our publication, adding that "in any case, there are very few European films in circulation in the States, so the impact on Europeans will not be huge."

Screenings of European movies in the States have been on the decline in recent years, plummeting from around 33 million ticket sales in 2017 to a mere 4.8 million in 2023, according to a report of the European Audiovisual Observatory from November 2024 among 36 European countries (including EU member states and some non-EU countries).

The Motion Picture Association (MPA), which represents US film, television, and streaming industries, penned a letter to the US administration on 11 March, flagging EU legislation imposing quotas requiring video on demand services operating in the EU reserve 30% of their catalogue for European work. They also griped about obligations to invest in European works made by EU member states.

EU's audiovisual legislation was also singled out as a hindrance to trade with the EU by a U.S. trade representative's report published on 2 April.

The EU, already wrestling with tariffs of 25% on its aluminium and steel, 25% on its cars, and 10% on all its imports, is negotiating with the US administration on a trade deal to put an end to the war launched by Trump's administration. But the content of the negotiation remains murky, and the audiovisual production quotas won't be on the table, an EU official informed our publication.

Trump's threats have managed to seize the limelight ahead of the Cannes Film Festival, which kicks off on 13 May.

More on this topic

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Trump Threatens to Impose 100% Tariff on Films Made Abroad
Hopes of U.S. Beating China in the Humanoid Robotics Race May Be Squashed by Trump's Tariffs

Tags:- U.S. Politics- European Union- Donald Trump- Tariffs- Cinema- Trade Wars

Enrichment:

Implementing a 100% tariff on foreign-produced movies, as envisioned by Donald Trump, would have significant repercussions and raise numerous legal issues. Here are some potential outcomes and legal considerations:

Potential Effects

Economic Effect:
Increased Costs: A 100% tariff would significantly boost the cost of importing foreign films, potentially leading to higher ticket prices for consumers. This could impact demand for foreign movies in the U.S.
Trade Retaliation: Other countries might retaliate by imposing similar tariffs on U.S.-produced films, which could harm the U.S. film industry's global exports.
Cultural Exchange:
Reduced Availability: Higher tariffs could diminish the accessibility of foreign films in the U.S., restricting cultural exchange and variety in cinema offerings.
Impact on Independent Films: Independent foreign films might be particularly impacted, as they often operate on tighter budgets and rely on U.S. releases for global recognition.
Industry Employment:
Job Losses: If the tariff leads to reduced demand and distribution of foreign films, it could impact jobs in the film distribution and exhibition sectors.
Political Relations:
Strained Relations: Imposing such tariffs could strain U.S. relationships with other countries, particularly those with substantial film industries.

Legal Considerations

World Trade Organization (WTO) Rules:
GATT and GATS: The General Agreement on Tariffs and Trade (GATT) and the General Agreement on Trade in Services (GATS) lay the groundwork for international trade. Imposing a 100% tariff might go against these agreements, as they generally prohibit discriminatory treatment and excessively high tariffs.
Dispute Settlement: If other countries perceive the U.S. tariffs as violating WTO rules, they could initiate dispute settlement proceedings against the U.S.
U.S. Domestic Law:
Trade Act of 1974: This act grants the President certain authority to impose tariffs, but it must be executed within the purview of U.S. law and international agreements.
Congressional Oversight: Congress holds oversight and could intervene if it contests the President's authority to impose such tariffs.
Anti-Dumping and Countervailing Duties:
Legal Basis for Tariffs: In certain instances, tariffs can be imposed if there is evidence of dumping or unfair subsidies. However, a 100% tariff appears more punitive than corrective and might not fulfill the legal prerequisites for such measures.
First Amendment Concerns:
Freedom of Expression: There could be First Amendment implications if the tariffs are viewed as restricting access to foreign films, which might be argued as affecting freedom of expression.
The European film industry is bracing for potential consequences amid escalating trade negotiations, as U.S. President Donald Trump has threatened to impose tariffs on movies produced outside the States.
Juliette Prissard, General Delegate of Eurocinema, expressed concern about the risk of culture taking a backseat to EU legislation such as that on digital in ongoing trade squabbles between Brussels and Washington.
Trump has greenlighted the Department of Commerce and the Office of the U.S. Trade Representative to slap a 100% tariff on any and all movies coming into the country from foreign lands.
A tangible plan on how any such tariff on international productions could be implemented remains unclear, as both big and small films often incorporate production both domestically and internationally.
The Motion Picture Association (MPA), which represents US film, television, and streaming industries, expressed concerns about EU legislation requiring video on demand services operating in the EU to reserve 30% of their catalog for European work, as well as obligations to invest in European works made by EU member states.