The recent announcement by US President Donald Trump regarding the imposition of high tariffs on foreign-produced films has created uncertainty in Germany. Jörg Bachmaier, CEO of Studio Babelsberg in Potsdam, expressed, „Many questions remain unanswered, and the impact on our business and the production location in Germany as a whole cannot be fully assessed at this time.“
Bachmaier emphasized that as a long-standing partner for US productions filming in Germany and as part of the internationally active Cinespace Studios platform, they are closely monitoring the situation to understand how the proposed tariffs may affect their operations, services, and clients.
Studio Babelsberg, known as the birthplace of German cinema, has been involved in popular productions, including the German-language series „Babylon Berlin“ and internationally successful films like „Inglourious Basterds“ and „Bridge of Spies.“ Cinespace Studios operates studios in the USA, Canada, and Europe.
Trump’s Concerns for American Film Industry
Trump previously claimed that the American film industry is on the decline, attributing this to other countries attracting filmmakers and studios with various incentives. His proposed solution includes a 100 percent tariff on films that are produced abroad and imported into the United States. This could potentially impact the business model of US studios, which often film overseas to reduce costs.
Further details on the implementation of such tariffs were not provided. Trump announced discussions with representatives from the film industry, but it remains unclear how these tariffs would function, as films do not have a fixed price like goods and often involve cross-border productions. The US government would need to find a method to assess films for tariff purposes and determine when they would be classified as imports.