The Tariff Shockwave: How The U.S. Is Trying To Bring Back Hollywood Dominance – And How It Will Fail
Welcome to Marconi, our new European newsletter and content section. Every week, we will be bringing you some of the best thinking from our friends across Europe and the Middle East. It’s a way for our growing European audience to see their voices reflected and for North American and antipodal audiences to get a better handle on what the scene is on the ground in the EU. Our first piece, from Stuttgart, Germany-based Christian Knaebel, deals with a very hot topic at the moment: tariffs.
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The gloves are off. The U.S. government drops a bombshell—new tariffs on audiovisual imports from Canada, Mexico, China, and Europe. Hollywood studios, streaming giants, and broadcasters are left scrambling. What was once a well-oiled, international content machine is suddenly a fractured mess of rising costs, broken supply chains, and delayed productions.
Overnight, licensing deals for European dramas become more expensive, VFX work outsourced to Canada is under threat, and the price of Chinese-made broadcasting equipment surges. Budgets tighten, content acquisition slows, and the industry faces an unprecedented crisis.
The Domino Effect: How Tariffs Disrupt the Audiovisual Industry
It is a fact we have been aware of for decades: the audiovisual industry has become very globalised. While we see local and regional players emerge and grow into certain significance, we still have U.S. businesses as the ones who benefit most from this globalisation. Yet, there are also signs that this industry is not a one-way street but highly interconnected and kind of co-dependant on global supply chains and relationships. Whether it’s Hollywood blockbusters filmed in Canada, Netflix’s European original series, or U.S. TV stations relying on Asian-made broadcasting equipment, the industry thrives on international collaboration.
However, what happens when a major player decides to disrupt the global stage? In a move that could have far-reaching consequences, the U.S. government is imposing tariffs on imports from various countries, including Canada, Mexico, and China, and even considers Europe as its next target. This could set off a chain reaction that reshapes the audiovisual landscape. This action, aimed at boosting domestic production, could unintentionally undermine the very industry it seeks to strengthen by raising costs, disrupting supply chains, and inviting retaliatory measures.
It is clear that protectionist policies, such as tariffs on imported content, technology, and services, pose a severe threat to this ecosystem.
Personally, I hate borders and any protectionism: they are like medieval torture instruments – not to mention utterly stupid and myopic ways to do politics.
The Direct Impact of Tariffs
Higher Costs for U.S. Companies
Tariffs on broadcasting hardware from China and Europe increase costs for U.S. studios and streaming platforms.
Import duties on European content (films, TV shows, and sports rights) make acquisitions more expensive.
Retaliatory tariffs from other countries could make U.S. content more expensive to export, reducing global viewership and revenues.
Disruptions in Supply Chains
Many U.S. broadcasters rely on European and Asian equipment (cameras, editing software, transmission gear). Tariffs will drive up prices, force companies to seek alternative suppliers, or delay projects.
Post-production and VFX outsourcing to Canada and Europe becomes less attractive if new tariffs increase service costs.
Strained International Partnerships
European and Canadian content producers may pivot away from U.S. markets, instead partnering with Asian, Latin American, and African distributors.
Major co-productions (e.g., HBO and BBC, Netflix and German studios) may decline due to financial constraints.
European streaming platforms (Sky, Canal+, Viaplay) may favour local or Asian content over American imports.
Consumer Impact: Higher Prices, Less Content Diversity
Subscription fees for streaming services could rise as platforms struggle with increased costs.
Viewers may see fewer international shows on their favourite platforms as licensing costs surge.
Sports fans may lose access to international events if broadcasting rights become too costly.
Get Into Survival Mode: How the Audiovisual Industry and Your TV Business Can Adapt to Tariffs
While tariffs pose a significant challenge, businesses can adopt proactive strategies to minimise disruptions and maintain competitiveness.
1. Diversify Content and Sourcing Partnerships
U.S. broadcasters and streaming services should expand production in tariff-free regions (e.g., Latin America, Australia, Southeast Asia).
European producers should strengthen partnerships in Asia and Latin America to offset potential losses in the U.S. market.
Companies should invest in local and regional productions to reduce dependency on international imports.
2. Reshape Supply Chains and Manufacturing
Relocate manufacturing of broadcasting equipment to non-tariffed regions (e.g., shifting from China to Vietnam, India, or Mexico).
Establish U.S. subsidiaries to manufacture and distribute locally, avoiding import tariffs.
Invest in digital workflows and cloud-based production to reduce reliance on physical equipment imports.
3. Strengthen Direct-to-Consumer (DTC) Strategies
Streaming platforms can bypass traditional licensing barriers by offering direct access to international content.
European and Canadian broadcasters can increase investments in their own streaming platforms, reducing reliance on U.S. distributors.
Subscription models could shift towards hybrid approaches (advertising + subscription) to absorb cost increases.
4. Leverage Trade Agreements and Lobbying Efforts
Industry groups should advocate for exemptions on key audiovisual products and services.
Businesses should take advantage of free trade agreements (e.g., USMCA for North America, EU agreements with other markets).
Collaborate with policymakers to ensure the audiovisual sector remains globally competitive.
Practical Steps for Businesses to Shield Against Tariffs
For companies operating in the audiovisual industry, here are concrete actions to mitigate tariff impacts:
For Streaming Platforms & Broadcasters:
Secure long-term licensing deals with international content providers before tariffs are imposed.
Invest in local content production to reduce reliance on foreign markets.
Adjust pricing models carefully to pass costs onto consumers without driving away subscribers.
For Film & TV Production Companies:
Explore alternative shooting locations outside high-tariff regions.
Diversify post-production and VFX partners to avoid over-reliance on any one country.
Strengthen relationships with regional distributors to secure new revenue streams.
For Broadcasting Technology Suppliers:
Move manufacturing hubs to non-tariffed regions or increase production capacity in domestic markets.
Invest in SaaS-based solutions (cloud-based editing, remote production) to reduce reliance on hardware exports.
Explore strategic partnerships with regional tech firms to continue supplying equipment under favourable trade conditions.
What We Have to Live With: A More Fragmented but Adaptable Industry
The audiovisual industry has been built over decades on the foundation of global trade, partnerships, and seamless content distribution. However, protectionist policies and tariffs threaten to fragment this ecosystem—raising costs, disrupting supply chains, and limiting content diversity. Businesses that adapt quickly, regionalise their supply chains, and invest in new markets will emerge stronger from these disruptions.
While the future remains uncertain, one thing is clear: the global audiovisual industry must remain flexible, innovative, and proactive to navigate the challenges of a tariff-driven market.
And as I have said time and time again: it is time to become more independent from U.S. dominance and strengthen your local and regional TV industries and businesses.
