European films at risk from tariffs - Industry could be "sacrificed" to reach agreement with Trump
The film industry in Europe is concerned that hard-won legislation setting quotas for European content for streaming platforms could be put at risk, following US President Donald Trump's threat to impose tariffs on films produced outside the United States.
The film sector will face problems if it becomes part of negotiations in the ongoing trade spat between Brussels and Washington, a key EU film industry representative said.
"We do not want to be part of general negotiations on tariffs between Europeans and Americans. There is always a risk that culture will take second place to EU legislation on digital markets," he stressed. According to sources, there are fears that the bloc's executive could sacrifice the cinema sector to find an agreement with the US on tariffs.
In a post on his Truth Social platform, Trump said he has authorized the Commerce Department and the Office of the U.S. Trade Representative to impose a 100% tariff "on every film coming into the United States that is produced in foreign countries."
“The American film industry is dying very quickly,” he wrote, complaining that other countries “are offering all kinds of incentives to lure” directors and studios away from the U.S. “This is a concerted effort by other nations and, therefore, a threat to National Security.”
It is not yet clear how such a fee would apply to international productions. It is common for films, big and small, to include production in both the US and other countries.
"If Europeans can no longer make films outside the US, this becomes absurd," sector experts underline, adding that "anyway, there are very few European films in circulation in the US, so the impact on Europeans will not be great."
European film screenings in the US have declined in recent years, shrinking from around 33 million ticket sales in 2017 to 4.8 million in 2023, according to a report by the European Audiovisual Observatory.
The Motion Picture Association (MPA), which represents the US industry, wrote to the US administration about EU legislation that reserves 30% of its catalogue for European works. They also opposed obligations to invest in European works produced by the bloc's states.
EU audiovisual legislation was also highlighted as a barrier to trade with the Union by a report by the US trade representative.
The European Union, which already faces tariffs of 25% on its aluminum and steel, 25% on cars and 10% on all its imports, is negotiating with the US administration for a trade deal. But the content of the negotiations remains uncertain and audiovisual production quotas will not be part of the discussion, an EU official said.
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