Donald Trump has once again placed Hollywood at the center of his political agenda. This time not with personal attacks on celebrities, but with a decision of high economic impact: to impose a 100% tariff on all films produced outside the United States and exhibited in the country. The announcement, made through its Truth Social platform, shook the audiovisual industry and sparked a wave of reactions both inside and outside the studios.

"We want movies made in America, again!" wrote Trump, repeating the slogan of his economic crusade. According to him, foreign production not only weakens Hollywood, but constitutes "a National Security threat."

The White House announcement comes at a complex time for the U.S. film industry. After the pandemic hit and the screenwriters' and actors' strikes in 2023, many productions migrated to other countries attracted by tax incentives, lower costs or unique landscapes.

Netflix, for example, announced a US$1 billion investment in Mexico to develop films and series over the next four years. It has also strengthened its operations in countries such as Spain, the United Kingdom and South Korea. Disney, Paramount and Amazon Prime have followed similar strategies to maximize their production margins.

The threat of tariffs is a blow to these models. Although the government has not detailed how it will apply a 100% tax on digital content -whose distribution does not involve physical goods but online transmissions or downloads-, the announcement has already caused a drop in the shares of several Wall Street-listed studios.

A divided response

The reaction in Hollywood has been mixed. While some union and creative sectors recognize the urgency of strengthening domestic production, there is a broad consensus that tariffs are not the way.

"It's crazy how many productions have gone outside because of the lack of exemptions here. But obviously what is needed are incentives, not tariffs. Tariffs would choke what's left of the business," one executive told Deadline on condition of anonymity.

Matthew D. Loeb, president of the IATSE union - which represents more than 160,000 behind-the-scenes workers - warned that any trade policy must be balanced and not hurt allies like Canada, which is part of the North American film ecosystem.

For its part, SAG-AFTRA, the actors' union, said it awaits "the specifics" before taking a formal position, but reiterated the need to "move forward in dialogue to achieve our common goals."

Trade war with ideological undertones

The announcement is part of the "total trade war" policy that Trump has deployed during his second term, with widespread tariffs on Chinese products and restrictions on foreign services. In the case of cinema, there is also a cultural dimension: a confrontation between conservative nationalism and an industry that has been a symbol of American liberal progressivism.

Cannes, the prestigious French film festival, responded to the new climate with a symbolic charge. In its 2025 edition, it will award the honorary Palme d'Or to actor Robert De Niro, one of Trump's most outspoken critics. And in 2024, it selected in competition The Apprentice, a film that chronicles the former president's political and business rise. Trump called the film "defamatory and politically repugnant."

In addition, from the U.S. administration, the European model that requires platforms such as Netflix to finance local production in each country has been harshly questioned. According to an official memorandum, these demands constitute a form of "regulatory extortion".

A real risk for Hollywood

The data confirms it: audiovisual production accounts for more than 2.3 million jobs and sales in excess of $279 billion in the United States, according to figures from the Motion Picture Association. However, shooting days in Los Angeles reached an all-time low in 2024, and domestic investment figures have fallen 26% since 2022.

Trump, who appointed the likes of Sylvester Stallone, Mel Gibson and Jon Voight as "special ambassadors" for film revitalization, is attempting to politically capitalize on an industry that has generally been adverse to him. But experts warn that measures like this could further isolate Hollywood from the global market.

In parallel, China - the world's second largest film market - has already responded by reducing the quotas of U.S. films that can be officially shown in its theaters. A partial closure of that market could mean millions of dollars in losses for the studios.

With information from AFP