Film industry finds itself entangled in US-EU tariff battle

Europe’s film industry is sounding the alarm over fears that recently secured EU legislation mandating European content quotas on streaming platforms could be jeopardized amid ongoing transatlantic trade negotiations.

Concerns escalated after US President Donald Trump threatened to impose steep tariffs on foreign-produced movies—a move that has stirred anxiety during the Cannes Film Festival, one of Europe’s most prestigious cultural events. The prospect of the film industry being caught in the crossfire of US-EU trade tensions is troubling, according to key figures in the European cinema sector.

“We do not want to become part of the broader trade negotiations between Europe and the US,” Juliette Prissard, General Delegate of Eurocinema, which advocates for film producers in Brussels, told Euronews. She warned that cultural protections could be sidelined in favour of broader economic compromises.

“There’s always a risk that culture is downgraded compared to legislation in other sectors, like digital,” Prissard explained, adding that the European Commission may treat audiovisual regulations as more expendable when trying to secure a deal with Washington. President Trump, earlier this month, authorized the US Department of Commerce and the Office of the US Trade Representative to impose tariffs of up to 100 per cent on foreign-made films. In a post on his Truth Social platform, Trump railed against what he described as unfair competition: “The Movie Industry in America is DYING a very fast death,” he wrote, accusing other countries of offering incentives to lure away film studios.

He claimed the situation was “a National Security threat” and also a matter of “messaging and propaganda.” However, the article urges that the practicalities of enforcing such a tariff remain unclear, especially given the international nature of modern film production. Big-budget projects such as “Mission: Impossible – The Final Reckoning” typically film in multiple countries, making it difficult to define what counts as a “foreign” movie. “If Europeans are no longer allowed to film outside the US, the policy becomes absurd,” said André Buytaers, president of Pro Spere, the Belgian federation representing audiovisual and film creators. 

He also noted that European films already have minimal presence in the American market, saying, “There are very few European films in circulation in the US, so the impact on Europe may be limited.” Indeed, the share of European films seen in the US has sharply declined. According to a November 2024 report by the European Audiovisual Observatory, as cited by Euronews, ticket sales for European films in the US dropped from 33 million in 2017 to just 4.8 million in 2023.

The study covered 36 European countries, including both EU members and non-EU states. Pushback from US industry against Trump's decision Meanwhile, the Motion Picture Association (MPA), which represents US film, TV, and streaming companies, has expressed its own frustration. 

As the article recalls, the MPA criticized EU laws that require video-on-demand platforms operating in Europe to allocate at least 30 per cent of their content to European productions in a March 11 letter to the US government. The group also objected to investment requirements imposed by EU member states on these platforms. These policies were further labelled as trade barriers in an April 2 report by the US Trade Representative. 

The EU is already facing American tariffs on several goods—25 per cent on aluminium and steel, 25 per cent on cars, and 10 per cent on all imports—and is currently negotiating a broader trade agreement with the US aimed at resolving these issues. However, an EU official told Euronews that audiovisual quotas are not on the table in the current talks, although the scope of discussions remains somewhat unclear. 

Despite reassurances, European filmmakers worry that cultural protections like content quotas could be quietly sacrificed to achieve progress in the wider trade deal. For now, the future of Europe’s film legislation—and its position in the global streaming landscape—remains uncertain. 

By Nazrin Sadigova