Trump’s movie tariff threat puzzles Europe

Europe's moviemakers are bracing to become the next industry embroiled in Donald Trump's trade war.

The U.S. president pledged Sunday to slap a 100 percent "tariff" on movies "produced in Foreign Lands," after governments worldwide have enticed production teams with lucrative tax breaks and lower labor costs.

"WE WANT MOVIES MADE IN AMERICA, AGAIN!" Trump said in a Truth Social post, claiming to have instructed the U.S. Department of Commerce and the Trade Representative to crack down on this "National Security threat" and "propaganda."

The administration has yet to explain how the tariff would work or what it would exactly target.

"Commerce is figuring it out," said a White House official, granted anonymity to share details about the internal process. "Maybe, like, the rights to movies or something," they offered, adding that a study will be launched.

Experts in the U.S. have pointed out that movies are exempt from tariff orders, per the so-called Berman Amendment from 1988.

Across the Atlantic, confusion — if not surprise — reigned. 

"We felt that [cinema] could become a battlefield [amid the trade war]. We're entering the unpredictable," said Pascal Rogard, president of the SACD French authors’ society. "This is contrary to international commitments."

Although the criteria as to what constitutes a "foreign" production remain unclear and contentious, "the political gesture is in line with what we expected to happen," said a French industry insider who, like others contacted by POLITICO for this story, was granted anonymity to speak freely amid the uncertainty surrounding Trump's plan.

"Everyone's trying to make sense of what it means, or what it might mean," said another.

Others slammed the damage the move could do to the sector.

"Ousting the European film industry from the U.S. market is a harmful move toward cultural essentialism," said Nela Riehl, a German lawmaker from the Greens chairing the European Parliament's culture committee. "Protectionism in this sector will only encourage other regions to retaliate, like we have seen it from China already."

Laurence Farreng, a member of the European Parliament from French President Emmanuel Macron's party, said "imposing duties will penalize American industry in the end."

A group of EU lawmakers from the Parliament's culture committee will visit Los Angeles at the end of May to meet U.S. movie producers, she said.

According to Trump, the tariffs aim to prevent Hollywood from dying a “very fast death.” Los Angeles has seen feature movie shoot days plummet — from 3,901 in 2017 to just 2,403 in 2024, a 38 percent drop highlighting its dwindling role on the global scene.

Trump's bombshell memo in February had already slammed EU media rules that "require American streaming services to fund local productions," in a clear reference to the bloc's audiovisual media services directive that allows national governments to force Netflix, Amazon Prime, Disney+ and others to invest in European works.

Whatever form it takes, the new tariff might be added to the list of bargaining chips in the unfolding trade standoff between Washington and Brussels.

As the Cannes Film Festival kicks off in France next week, the controversial move is likely to take center stage, with French moviemakers from the ARP association preparing to speak out.

"I will be present at Cannes and I believe that this subject will keep the producers very busy. It'll be very interesting to hear whether they can do without a market like the European one, and no doubt they'll get things moving, just as manufacturers in other American sectors have done," Farreng said.

"For now, this is just an announcement by Trump," Riehl said. "The EU is already working toward more opportunities and visibility for European film in Europe and globally. This approach of 'more Europe' will now be the way to go."