Almost two weeks after Donald Trump announced his intention to impose tariffs on film, the matter has not moved.
His lack of clarity in his initial message immediately sparked a negative reaction not only in Hollywood, but also in film industries in countries like Mexico and France, awaiting the impact if the measure were implemented.
And this is because in a message posted on his social media, Trump practically condemned every film produced abroad, but he did not define whether it was solely for productions from his country, made in other nations, or from around the world.
“The American film industry is dying rapidly. Other countries offer all kinds of incentives to lure our filmmakers and studios away from the US,” the president wrote.
“Therefore, I authorize the Department of Commerce and the U.S. Trade Representative to immediately begin the process of imposing a 100% tariff on all films entering our country produced abroad. We want movies made in America again!” he emphasized.
Hours after the president’s announcement and the controversy it sparked, the White House issued a statement stating that there had been no final decision, attempting to calm the waters.
“The Administration is exploring all options to comply with President Trump’s directive to safeguard our country’s national and economic security while we Make Hollywood Great Again,” it read.
The fact is that at Cannes, many figures such as Robert De Niro spoke out against Trump, who this week said that the James Bond saga would not have problems even if it were filmed in other countries.
In other words, his most recent statement would clash with what he said on May 4th.
But how would it affect Mexico, if what was written two weeks ago is taken literally and only considering the phrase “establish a 100% tariff on all films produced abroad entering our country.”
First, we need to define the tariff. A tariff is a tax applied to goods or services when they cross a country’s border—that is, to imports. In the case of films, some argue that it’s a good thing, as this is anything that fills a need, and it may or may not be tangible.
Over the last 15 years, according to figures from the Statistical Yearbook of Mexican Cinema, an average of eight national films have reached US theaters annually, that is, one every month and a half. People like Armando Casas, president of the Mexican Academy of Cinematographic Arts and Sciences, consider this figure to be one that would not really impact film imports. There are markets like Spain and France that also purchase a similar number of feature films.
If tariffs on foreign films were to increase, regardless of their nationality, this would mean that distributors and theaters in the US would have to find ways to minimize the impact on their economies. The easiest way is to make the box office ticket for that film cost more than local tickets. Or, they could find partners to cushion the cost of imports. The quickest solution is to stop titles from entering the US from every country in the world.
It is unclear whether the tariffs would also apply to films produced by streaming platforms. Netflix alone announced a $1 billion investment in Mexico to make films and series for the remainder of its six-year term. According to its latest financial reports, nearly 51% of Netflix’s original content is produced outside the United States, with an emphasis on countries such as Mexico, South Korea, Spain, and Germany.
Co-productions could be affected, as producers from both countries will have to do the math before the title reaches the US. This could lead American entrepreneurs to stop partnering with Mexican counterparts. According to the Statistical Yearbook of Mexican Cinema, from 2019 to 2024, approximately 17 co-productions were made annually, most of them filmed in Mexico. Others, such as Michel Franco’s “Memoria,” were shot entirely in the United States, while a smaller number, such as “La Cocina,” spent a few days in Mexico and the bulk of the productions in Mexico. “There could be something there, but we don’t know anything; it’s all speculation,” Casas comments.
Source: eluniversal
