Judging by the astonished expressions on the European buyers and sellers present at the recent American Film Market in Las Vegas, the U.S. election outcome was not in line with their expectations. On the morning following, the most frequently heard reaction around the Palms Casino, where the conference took place, was "WTF" (or a similar variation) accompanied by a desire to catch a flight back home.

How the U.S. Election Shifted Europe's Creative Landscape

Section 1: Perceived Shift in America's Image Abroad

For a considerable period, the U.S. was regarded as an ideal model, embodying openness, freedom, and inclusivity, where artists and the arts could thrive. However, with this major turn of events, America now finds itself among the countries that seem less accessible and more closed off. This change in perception has opened up opportunities for Europe in the creative realm.

As a U.S. film executive pointed out, the long-standing admiration for the U.S. as a model society has undergone a transformation. The new political order presents a different landscape, making Europe an attractive land of opportunity for talent.

Section 2: U.S. Productions Relocating to Europe

Skyrocketing production costs, a scarcity of incentives, and the impact of the pandemic and Hollywood strikes have led U.S. productions to flock to Europe. Countries there have been actively enhancing their tax credits, making it an appealing destination.

Raffaella Leone, whose Leone Film Group is backing James Gray's "Paper Tiger," highlights how just a few years ago, producing an American movie in Europe would have been unthinkable. Now, it is a viable option. American directors are choosing Europe not only for tax rebates but also for greater creative freedom, such as working with writers not affiliated with major guilds.

Section 3: Trump's Policies and Their Impact

Trump's protectionist policies have made Europe a more attractive destination in multiple ways. If the new president imposes tariffs, the dollar is likely to strengthen against the pound and the euro, increasing U.S. production costs.

Henry Birkbeck, a film finance expert at Reed Smith, explains that this sudden shift makes the U.K. and European creative industries more cost-effective. Charles Gillibert, who produced Kristen Stewart's "The Chronology of Water" and Jim Jarmusch's "Father, Mother, Sister, Brother," also emphasizes that for most American independent directors, shooting in the U.S. has become too expensive, limiting their ability to critically examine and convey their country's issues.

Section 4: Europe as a Cultural Haven

Elsa Huisman, founder of Studio 112, believes that from a filmmaker's perspective, there will be concerns about being financed or produced from the U.S. in the current government. Europe remains a stronghold of cultural diversity, freedom of tone and subject, and openness.

Across the Atlantic, Europe offers a unique environment that allows for a wide range of creative expressions. This cultural diversity attracts filmmakers and independent producers seeking different creative spaces.

Section 5: Hollywood's Changing Role

While Hollywood still holds an advantage in scouting emerging artists, other countries have emerged as strong contenders. Streaming services have invested heavily in non-U.S. content, with shows like "Lupin" and "Squid Game" attracting massive audiences.

Ardavan Safaee, CEO of Pathé Films, notes that a range of mid-budget movies that were once made in Hollywood and financed by Europeans on the pre-sale model have disappeared. European studios now have an opportunity to revive these models and contribute to the independent film circuit.