For Hollywood, the timing of Trump's tariffs couldn't be worse: explained why

US President Donald Trump announced the introduction of large-scale tariffs, claiming that these measures would help balance the global trade system and make America richer. However, in Hollywood, the mood seems to be quite different. Although the media industry does not depend on the import of physical goods, its main advertisers work in industries that will be affected by tariffs. According to analysts, the advertising market is already beginning to feel the negative consequences of these changes, reports The Hollywood Reporter, writes UNN.

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In the coming weeks, studios, as indicated, will begin their preliminary negotiations with media buyers - billions of dollars are at stake - just when major advertising buyers are reviewing their budgets amid global economic uncertainty.

Brands in the automotive sector, the field of consumer goods, as well as in the segments of food and beverages are reviewing their costs due to the uncertainty caused by tariffs. In addition, a possible reduction in tourist flows from Canada and Europe may affect the hotel business and air transportation.

"This is truly a perfect storm of bad news," says a media industry representative, adding that while prices are currently stable, the outlook for the rest of the year looks less optimistic.

In recent weeks, analysts have lowered their growth forecasts for the advertising market in 2025: Brian Wieser adjusted the figure to 3.6% (from 4.5% in December), and the analytical company Magna – to 4.3% (from 4.9%). Yes, they expect the advertising business to grow, but this will mean a sharp decline from 2024, and in fact all this growth will be provided by technology giants such as Google and Meta, while traditional media may face stagnation.

Even technology giants are not immune to the downturn. Analyst Michael Nathanson predicts that even YouTube may lose growth momentum due to the increase in impressions in the wider CTV ecosystem, which may put pressure on advertising prices.

At the same time, sports broadcasts remain a stable segment. Demand for advertising in sports programs remains high.

Taking into account all these challenges, major industry players are betting on sports content, hoping that it will help them survive economic instability. However, advertising budgets are the first thing that is cut in times of crisis, and it is traditional media that may feel it the most.

Trump's tariffs hit Europe and China harder than expected - analysts03.04.25, 14:33 • 10273 views