Navigating the 2024 US Presidential Election and Impact on Creative Production

With the 2024 U.S. presidential election ushering in new policies and potential economic shifts, marketing professionals and advertisers must consider how such changes could ripple through the production industry. A significant proposal under consideration is the plan to introduce new tariffs on imports—up to 20% on general imports and as high as 60% on imports from China. For the production and advertising industry, this could bring both challenges and opportunities.

Our team at APR thoroughly analyzed the proposed tariffs and their potential impact on overseas and domestic production. As the situation continues to evolve, we will share updates.

For now, here’s what advertisers and marketing professionals need to know to prepare for changes.

How Proposed Tariffs Could Affect Advertising Production

The proposed tariffs aim to boost U.S. domestic manufacturing, but their influence extends indirectly to other industries, including advertising production. These indirect effects can manifest in the form of increased costs for goods, potential trade retaliation, and shifts in global economic conditions. Here’s a breakdown of how different regions could be impacted:

MEXICO

U.S.-Mexico trade heavily relies on non-oil exports, 80% of which head to the U.S. Any proposed tariffs or renegotiations of trade agreements could disrupt Mexico’s economy, potentially driving up production costs and reducing infrastructure reliability for shoots. While Mexico remains a strong option for international production, brands should be cautious and consider potential risks over the coming years.

EUROPE

Despite historical trade disagreements, the U.S. and Europe share a strong bilateral trading relationship. Though tariffs in the past did not directly affect advertising production, brands can benefit from Europe’s diverse shooting locations. For now, Europe remains a stable and reliable choice for offshore shoots.

CANADA

Given its close economic ties to the U.S. and stability under recent agreements like the U.S.-Mexico-Canada Agreement (USMCA), Canada continues to be a low-risk option for advertising shoots. Its proximity and shared language make it an ideal substitute for U.S.-based productions when cost efficiency is a priority.

CHILE & ARGENTINA

With lower international trade volumes between these nations and the U.S., both Chile and Argentina represent minimal risk of tariff impact. Both regions remain strong candidates for cost-effective and reliable offshore production.

U.S. DOMESTIC PRODUCTION

While tariffs seek to encourage domestic production, there are cost implications to consider. Increased costs for imported equipment, coupled with rising labor costs due to union activity, could make U.S.-based production less competitive compared to prior years. Supply chain disruptions are another factor to monitor, as they could delay projects and increase costs for necessary materials.

Navigating These Changes with a Risk Mitigation Approach

Uncertainty is a constant in global production, and while tariffs may introduce volatility, there are strategies marketers and advertisers can adopt to minimize risks and seize opportunities:

• Leverage Competitive Bidding: While tariffs seek to encourage domestic production, there are cost implications to consider. Increased costs for imported equipment, coupled with rising labor costs due to union activity, could make U.S.-based production less competitive compared to prior years. Supply chain disruptions are another factor to monitor, as they could delay projects and increase costs for necessary materials.

• Consider Virtual Production: Virtual production offers flexibility and reduces reliance on physical locations. From creating “beach” scenes on indoor stages to replicating any desired environment, virtual production can reduce costs associated with travel and logistics.

• Utilize U.S. Tax Incentives: States offering tax incentives for production can offset higher domestic costs. Including tax-incentive states in your bidding process ensures you maximize the value of onshore shoots.

• Streamline Travel Expenses:  With international travel costs increasing by over 30% in recent years, tighten compliance with travel guidelines. Minimizing travel participants can significantly reduce expenses for offshore shoots.

Why Tariffs Offer Unexpected Opportunities

Though tariffs often feel like economic barriers, they can also uncover new efficiencies.

The Bottom Line

On balance, tariffs present challenges but not insurmountable ones. For most marketing professionals, the financial risk of tariffs across key production regions is low—particularly when compared to the cost savings of offshore versus domestic production. By adopting a strategic and informed approach, advertisers can continue to thrive in a shifting global landscape.

Need help planning your next production?  

Reach Out Today