A New Trade War Threatens the Audiovisual Sector

The Tariff Shockwave: How the U.S. is Trying to bring back Hollywood Dominance – and how it will fail

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 that we are aware about since decades: The audiovisual industry has become very globalized. While we see local and regional players emerge and grow into certain significance, we still have US businesses as the one who benefit most of this globalisation. Yet, there are also signs that this industry is not a one-way road but highly interconnected and kind of co-depending 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, China, and even considers Europe as its next target, potentially setting off a chain reaction that could reshape 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 protectionsm: they are torture instruments of the Medival – and 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 favor 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 favorite 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 minimize 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 toward hybrid models (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 of 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 favorable trade conditions.

What we have to live with: A More Fragmented but Adaptable Industry

The audiovisual industry has been build over decades on the concept 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, regionalize 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 said over and over again: Its time to become more independent from the US dominance and strengthen your local and regional industry and businesses.