On May 4, 2025, President Donald Trump announced a 100% tariff on all films produced outside of the United States. The measure aims to “repatriate” the American film industry and reduce reliance on international filming locations and foreign subsidies. According to Trump, the U.S. industry is “dying quickly” due to aggressive foreign tax incentives.
• The global film and TV industry generates over $400 billion annually, with a large portion involving international co-productions.
• Key countries such as Australia and New Zealand offer significant subsidies; Australia alone has allocated over A$540 million since 2019, while New Zealand’s screen industry generates NZ$3.5 billion annually.
• Film production in Los Angeles has declined by 40% in the past decade, according to FilmLA, as studios seek more cost-effective locations abroad.
US - MEXICO PRESIDENTIAL NEWS
Economic and Financial Impact:
• UStock prices for major entertainment companies fell 2% to 5% immediately following the announcement (Disney, Netflix, Warner Bros., Paramount Global).
• Independent filmmakers and mid-budget studios face cost hikes of 20%–30%, especially for productions reliant on international crews and equipment.
• Filming in the U.S. is often 35%–40% more expensive than in countries offering aggressive tax rebates (e.g., Canada, Hungary).
• The tariff disrupts global supply chains for imported film equipment—cameras, lenses, lighting, and postproduction software.
• International co-productions may decline, impacting content variety and reducing U.S. box office exposure abroad.
Macroeconomic Implications:
• The entertainment sector may face cost-push inflation, particularly in pre- and postproduction services.
• Potential retaliatory tariffs from major cultural and trade partners (Canada, UK, Australia) could extend to U.S. media exports.
• International investors may reassess projects in Hollywood due to growing regulatory uncertainty.
• The policy could accelerate the shift of global content development toward European or Asian markets.
Policy Uncertainty:
• Legal challenges are expected from industry groups citing WTO violations and First Amendment concerns (freedom of expression).
• U.S. lawmakers are divided: while some support the measure as a cultural sovereignty move, others warn of unintended economic fallout for a sector that represents 4% of U.S. GDP.
• It is unclear if the tariff would apply retroactively, adding contractual and financial uncertainty to ongoing productions.
• This move raises fears of a broader protectionist trade agenda, particularly amid the 2026 campaign cycle.
SOURCE: BBC NEWS
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• INITIATIVE WITH DRAFT DECREE TO AMEND SECTION I OF ARTICLE 127 OF THE FEDERAL LABOR LAW
Presented by: Sen. Jorge Carlos Ramírez Marín (Yucatán - PVEM)
Objective: Limits exclusion from profit-sharing to individuals holding top executive roles with strategic decision-making authority, legal representation, and oversight of all company operations; excludes mid-level managers with limited functions.
Status: 2025-04-30 – Published in the Parliamentary Gazette
• INITIATIVE WITH DRAFT DECREE TO ENACT THE GENERAL LAW ON PAY EQUALITY BETWEEN WOMEN AND MEN
Presented by: Deputy Julia Arcelia Olguin Serna (Zacatecas - PVEM)
Objective: Establish mandatory measures to eliminate wage discrimination based on gender, including mandatory salary audits, equality plans, and awareness campaigns, to promote fair compensation practices and remove gender-based workplace barriers.
Status: 2025-04-28 – Published in the Parliamentary Gazette
PUBLIC ADMINISTRATION
• DECLARATION OF PUBLICITY OF THE BILL TO ENACT THE NATIONAL LAW TO ELIMINATE BUREAUCRATIC PROCEDURES
Presented by: Transparency and Anti-Corruption Committee
Objective: Enact a national framework to eliminate bureaucratic procedures by promoting administrative simplification, digitalization of services, and technological capacity development across all levels of government.
Status: 2025-04-28 – Approved, passed to the Senate of the Republic
LEGISLATIVE CHANGES AND INITIATIVES
ECONOMY
• INITIATIVE WITH DRAFT DECREE TO ENACT THE FEDERAL ANTITRUST AND ECONOMIC COMPETITION LAW
Presented by: Sen. María Guadalupe Chavira De La Rosa (CDMX - MORENA)
Objective: Establish a legal framework to ensure free market competition by creating a new agency and prosecutor’s office to combat monopolistic practices, regulate dominant players, and protect consumers, especially in sectors like broadcasting and telecommunications.
Status: 2025-04-29 – Published in the Parliamentary Gazette
• INITIATIVE TO AMEND, ADD, AND REPEAL VARIOUS PROVISIONS OF THE FEDERAL ECONOMIC COMPETITION LAW AND THE FEDERAL LAW OF PARASTATAL ENTITIES
Presented by: Federal Executive
Objective: Proposes four key reforms: establishing the new National Antitrust Commission, adjusting its powers and structure, improving procedures to combat monopolies, and introducing changes in telecommunications and broadcasting regulations.
Status: 2025-04-25 – Published in the Parliamentary Gazette
• INITIATIVE TO AMEND AND REPEAL VARIOUS PROVISIONS OF THE FEDERAL CONSUMER PROTECTION LAW
Presented by: Sen. Moisés Ignacio Mier Velazco (Puebla - MORENA) (View profile)
Objective: Empowers the Federal Consumer Protection Agency (PROFECO) to review and register all adhesion contracts used by suppliers to ensure compliance and prevent abusive clauses. Contracts must be reviewed before use, and unaddressed observations will result in denied registration.
Status: 2025-04-28 – Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
CYBERSECURITY
• INITIATIVE WITH DRAFT DECREE TO ENACT THE CYBERSECURITY LAW
Presented by: Sen. Luis Donaldo Colosio Riojas (NL - MC)
Objective: Establish a legal framework for national cybersecurity, protecting human rights, critical infrastructure, and digital sovereignty. Proposes the creation of a National Cybersecurity Agency, strategy, incident response centers, and a national coordination system.
Status: 2025-04-30 – Published in the Parliamentary Gazette
• INITIATIVE TO AMEND ARTICLE 73, SECTION XVII OF THE POLITICAL CONSTITUTION OF THE UNITED MEXICAN STATES
Presented by: Sen. Alberto Anaya Gutiérrez (National List - PT) (View profile)
Objective: Grants Congress authority to enact general legislation on artificial intelligence, ensuring its development aligns with principles of human dignity, cybersecurity, ethics, and data protection. Requires creation of a federal AI law within 180 days and establishment of a bicameral expert commission.
Status: 2025-04-28 – Published in the Parliamentary Gazette
NEWS BY STATE
BAJA CALIFORNIA
Business leaders from across Baja California have united to request a reduction in the state’s payroll tax—currently the highest in Mexico at 4.25%—to a more competitive 3%, and to oppose the proposed elimination of the Baja California Business Trust Fund (FIDEM). During a statewide plenary meeting, representatives of organizations that account for 90% of the state’s GDP expressed concern about the region’s declining competitiveness, highlighting the closure of 2,400 companies and the loss of over 25,000 jobs in the past year. They stressed the importance of dialogue with Governor Marina del Pilar Ávila to discuss FIDEM’s benefits for economic development, security, and education, while also seeking transparency on the use of state tax revenues. Business leaders emphasized that FIDEM’s resources are managed jointly through a technical committee, countering claims of unilateral use by the private sector.
SOURCE: INDUSTRIAL NEWS BC
SONORA
Foxconn, the Taiwanese tech manufacturing giant, is in formal talks with the Mexican government to potentially establish an electric vehicle (EV) plant in Sonora, specifically in Ciudad Obregón. This initiative is part of the state’s broader Plan Sonora de Energías Sostenibles, aimed at attracting green investments and boosting regional competitiveness. Supported by President Claudia Sheinbaum and Governor Alfonso Durazo, a multi-agency task force has been formed to oversee the project’s feasibility. The plant could include EV assembly, battery production, and sustainable transport solutions. Foxconn already has $244 million invested in Mexico, and this project could position Sonora as a key hub in North America’s electric mobility supply chain. Local talent development and regional infrastructure improvements are also being aligned to support this long-term strategic move.
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE
GUANAJUATO
On May 6, 2025, the Governor of Guanajuato, Libia Dennise García Muñoz Ledo, met with Mazda’s top executives in Hiroshima, Japan, to reaffirm their strong partnership and discuss strategies to protect Mexico’s automotive industry amidst global challenges. Mazda has significantly increased production at its Salamanca plant, reaching 91% of its installed capacity in 2025. The governor highlighted efforts with the Mexican government to prevent U.S. tariffs that could negatively affect production. Mazda’s investment in Guanajuato has surpassed $1.05 billion, generating over 5,200 jobs, and the plant has produced more than 1.8 million vehicles since 2011. The meeting also led to an agreement to fund specialized training for 10 Guanajuato youths in Japan, further solidifying Japan’s role as a key commercial partner for the state.
SOURCE: MEXICO INDUSTRY
QUERETARO
The Querétaro International Airport (AIQ) is expanding its intercontinental destinations, including a new flight to Madrid, Spain, starting in October through Iberojet. The airport is also enhancing existing routes to North America, such as Los Angeles, and to the south, with plans for a direct flight to Panama. These efforts follow initiatives begun in January, with AIQ authorities highlighting infrastructure investments that support further growth. The airport now boasts a second waiting area with increased capacity and additional telescopic bridges. Governor Mauricio Kuri González emphasized the importance of expanding connectivity, especially with plans for a direct Panama-Querétaro flight, which would strengthen ties with South America.
SOURCE: MEXICO INDUSTRY
INVESTMENT NEWS
CENTRAL MEXICO
ALIGNED DATA CENTERS
ODATA, subsidary of Aligned Data Centers focused operating data centers, announced the launch of the first facility within its DC QR03 campus—its largest development in Mexico to date. Located in the PyME Industrial Park in Querétaro, the new campus represents a total investment of over $3 billion and will provide up to 300 MW of IT capacity once fully built.
NORTH
SEOJIN MOBILITY
Seojin Mobility, a South Korean auto parts manufacturer, has inaugurated the first phase of its new plant in Escobedo, Nuevo León, with a US$160 million investment and the creation of 300 direct jobs. The facility, focused on producing components for electric motors, is expected to begin mass production in June after current audits are completed. A second phase, requiring an additional US$140 million, is planned for completion by 2028. The plant will supply electric and hybrid vehicle parts to Kia/Hyundai, among other global clients like Tata, GM, Peugeot, and Renault.
BULKMATIC
Bulkmatic de Mexico, a key logistics firm operating rail terminals across the country, will invest US$250 million in Nuevo León, according to the state’s Ministry of Economy. The investment reflects Nuevo León’s broader strategy to attract industry through initiatives such as the relaunch of the “Made in Nuevo León” brand, ISN tax incentives tied to local sourcing, and the creation of an online system to streamline environmental permits. These efforts, highlighted at the 52nd General Assembly of Amcham Mexico (Northeast chapter), are part of a push to enhance regional integration, support SMEs through the Impulso Nuevo León program, and position the state as a national hub for innovation, including the launch of Mexico’s first AI cluster.
