Donald Trump's 100% tariff plans on movies becomes the focus of Cannes Film Festival

Donald Trump's plans earlier this month to impose a 100 per cent tariff on films shot outside of the United States has been a talking point at this years Cannes Film Festival, which is a pathway for other countries to attract filmmakers to shoot their movies there.

As per a report by Bloomberg, Trump's unique proposal was the talk of the Cannes Film Market, where 15,000 film professionals gather together in a vast, underground conference away from the light of the red carpet. This is the place where deals are signed, with representatives from various countries setting up their booths and promoting the incentives by their governments to attract filmmakers. Cannes acts as a major gateway for these countries to find financing and distributors, as well as locations and soundstages.

Cannes attendees perplexed

Many attendees were perplexed by the potential impact of any such tariffs by Donald Trump. Movies are often international efforts, co-produced in many countries, so it’s not clear how the tariff would be applied.

“Can you hold up the movie in customs? I feel it doesn’t ship that way,” US director Wes Anderson said at a press conference for his film The Phoenician Scheme, which has been shot at Germany.

Robert De Niro echoed his sentiments.

"You can’t put a price on creativity, but apparently you can put a tariff on it… Of course, this is unacceptable," he said.

Cannes Film Market doesn't give up

Among national representatives at the Film Market, where countries shop tax breaks and incentives to lure big-budget films, there was concern about how much of an impact Trump’s policy would have. But it didn’t stop them from pitching to American productions.

“Whatever the new US policy is, it is going to affect us, but we wait to see,” said Marysela Zamora, the film commissioner for Costa Rica, in a booth adorned with lush jungle photos. The country now offers a new 90% VAT refund to production companies that spend at least $500,000, which has helped triple money spent shooting in the country, Zamora said. ABC’s reality TV show Bachelor in Paradise recently shifted its production to the Central American country from Mexico.

At Hungary’s booth, a representative said Trump’s comments came as a surprise. The central European country offers filmmakers a 30% cash rebate, high-tech sets and a skilled workforce, making it an attractive option for big productions looking to lower costs. Paramount series NCIS and Apple feature film Matchbox, starring John Cena, are currently being shot in the country. Later this year, parts of Dune 3: Messiah will be filmed there.

The impact of any tariffs on the film industry won’t be felt immediately, and Hungary’s facilities are still at full capacity, Csaba Káel, the country’s commissioner, said in a statement.

At the entrance to the Film Market, Morocco paid for an ad wall touting a 30% tax rebate “with no cap,” showing a photo of the ancient town of Aït Benhaddou that served as a backdrop to Gladiator and Game of Thrones. On a column in the convention center, Invest India advertised tax incentives of as much as 40% for projects that spend $3 million locally. Saudi Arabia used a big waterfront tent to unveil plans for a sprawling production complex in Riyadh.

(With Bloomberg Inputs)