Trump's film tariffs could boost Italian cinema quality

President Trump's proposal to impose tariffs on imported films, framed as a measure to repatriate investment to the US, may paradoxically harm the American film industry while creating opportunities for Italy. A 2023 study in the Journal of Financial and Quantitative Analysis found that tariff reductions on foreign raw materials actually increased downstream vertical integration investments in the US; conversely, new tariffs could reduce investment in the US film economy. For Italy, tariffs would introduce a new competitive dynamic that could spur higher quality in domestic productions, which have been uneven—ranging from acclaimed works like 'Parthenope,' 'Diamanti,' and 'C'è ancora domani' to many poorly made films aimed at undemanding audiences. If the Italian industry responds not just with bilateral actions but with a shared strategy to improve quality, it could mitigate tariff effects on US distribution while boosting domestic viewership. The 2024 Italian box office already shows that quality films attract audiences, as evidenced by the success of 'Poor Things' and local hits alongside blockbusters like 'Inside Out 2.' Stefano Monti, partner at Monti&Taft, argues that a Trump challenge could thus be a positive catalyst for Italian cinema.