#TrumpTariffs
Cannes wouldn't be Cannes if something extraordinary didn't happen before the festival begins. This time, the noise is caused by U.S. President Donald Trump, who announced a week before the showcase that he's considering imposing 100% tariffs on film production abroad, which understandably shocked Hollywood, accustomed to cutting losses by shooting in cheaper countries and various tax breaks.
The industry immediately faced the question of how this would affect sales at the Cannes Film Market — one of the most important industry events where the fate of hundreds of projects is decided. According to experts, the president's initiative could indeed severely harm American companies' businesses.
Trump's actions are already impacting sales in China, but it would shrink the entire global market, since if there is a tax on films at the Cannes market or on films that have already been acquired, it will affect domestic distribution deals as well as investors, because their projects will suddenly be worth less money. We won't be able to make films with the same budgets, and actors won't be receiving the same fees.