President Donald Trump may have renewed his threat last month to impose 100% tariffs on films made outside the United States, but European film and TV industry experts are undeterred, with triumphant executives taking a victory lap at Rome’s MIA Market this week over the continued one-way traffic for Hollywood films across the pond.
“It’s a very simple question, but the United States understands it: There is no better place to work as a producer today than in Europe,” said Alexandra Lebret, a partner at French investment firm Axio.
Mr. LeBrette spoke Wednesday at a panel discussion that brought together veteran fund representatives, agents and producers to discuss the rapidly evolving world of film financing.
As production costs soar around the world and cost-conscious executives seek savings at all costs, Europe is seeing a surge in U.S. production thanks to a number of competitive advantages, from tax breaks to soft financing arrangements that generally lower production costs across the board.
“It’s great to be able to shoot in Europe,” said Rodrigo Texeira, a veteran producer at Brazil’s RT Features (“Call Me By Your Name,” “I’m Still Here”). “American films are coming here because they understand they don’t have the tools that Europe has.”
“We have the talent. We have tax incentives that can reduce the cost of any film or TV series by 30%. And we have additional financing,” LeBrette added. “It’s crazy. It’s great. So[investment company Axio]is not going to the US. We’re going to wait for the US to come.”
Last month, President Trump reiterated his threat to impose 100% tariffs on movies made outside the United States, posting on his Truth Social platform: “Our filmmaking business is being stolen from America and other countries just as candy is stolen from babies.”
In Rome earlier this week, Italy’s undersecretary for culture, Lucia Borgonzoni, slammed the latest threats as “extraordinary” and noted that the proposed tax “would harm Americans themselves if imposed.”
Texeira on Wednesday expressed confusion shared by industry experts around the world about what President Trump’s tariffs actually are, quipping that the president may next try to impose a tax “on[his]shoes.” “No one knows what he wants to say. No one knows what he’s talking about,” said the Brazilian executive.
“He’s taxing his companies, and that makes Europe a better choice[for American films],” Lebret added.
UTA sales agent Alex Brunner said ongoing close discussions with the White House highlight the risks for Hollywood at a time when “the cost of everything we consume is rising.”
“The most important thing is to give the client as much information as possible and try to get the maximum budget. Cost is not our friend, so we’re all running around the world trying to cover that cost…chasing tax credits, subsidies, anything that can reduce the cost factor,” he said. “That’s why we’ve seen an arms race of tax credits since COVID and the double whammy. That pursuit is driven by the cost factor of these films.”
Despite optimism about Europe’s turnaround as a manufacturing hub, panelists agreed that current trends are unsustainable. “The budget is too high. We don’t have enough money (to support),” Lebret said. “How can we reduce that? That’s the question we have to answer. This is an important question for the entire market.”
Last April, Lebret’s firm launched the Together Fund, billed as the first European equity fund dedicated to supporting independent production companies. With an initial capitalization of €58 million ($67 million), the fund was established with the aim of addressing a gap in the market. “MG for movies and TV series from international distributors has decreased,” Lebret said. “That’s why there’s now room for equity financing that wasn’t there before.”
Regarding presales, which has long been a mainstay of independent film financing, Brunner said it’s “old news” that previous models can’t provide the same peace of mind that once provided producers and financiers.
“Anything you can sell in advance now, it’s harder to do. That’s kind of old news,” he said. “Generally, when you go into any market right now, some have a big pre-sale, others you have to wait and see. And when you do that, you have to pivot.”
Ahead of next month’s American Film Market, Brunner acknowledged that the current situation is “feast or famine” for most films, saying it’s more important than ever for sales teams to put together an airtight package before bringing a project to market.
“We’re all busy packaging the movie together, and as we go through that process, we’re trying to add elements to the script and the filmmaker’s story that we think have potential before they’re sold,” he said. “We’re very careful about how we put things together, the price point, and what the finances are to really try it out.”
MIA Market in Rome will be held from October 6th to 10th.
