You do understand this is a move to protect Hollywood, Right? It is for the very reasons you cited.
IMO the other shoe here is stronger content restrictions and more government control of what gets made. Easier to do that with US productions, hence the attempt to make everything distributed in the US a US production.
Unless the new edict excludes farming out VFX. The VFX industry has been on its knees for years now, in a race to the bottom that has made r/vfx a pretty depressing place.
(Source: Spent the last few years working for a well-known VFX company)
It'll help thousands of Americans that used to be employed by said studios but were fired not because they couldn't do the job but because the greed of studio execs made them move production outside of the US, playing financial arbitrage games against the interest of the US.
Trump is trying to reverse this by making movies outside of the US, especially by US companies, more expensive. The goal here is not some statement about Hollywood but to bring movie production jobs back to US. The extras, the people who build sets, people who make food for actors etc. And jobs bring tax revenue and grow GDP, which helps every american.
Protect Hollywood from who, exactly? IIUC, an increasing number of "American" movies (i.e., those produced/financed by American studios) are being filmed outside the US.
This isn't a bunch of foreign film makers ganging up on poor, beleaguered film companies like Disney, Paramount and Neflix.
They, of course, are going to go out of business any minute now because those evil foreigners are taking away their movies. /s
No. Those very profitable studios are choosing to make movies outside the US to bolster those high profits by reducing labor, physical plant and safety expenditures.
As such, how is charging Hollywood studios 100% tariffs to import the movies those same studios paid to make "protecting" Hollywood?
Don't mistake the above for my support of Hollywood studios. They are the OG rapacious scumbags that the SV tech bros are trying (and sometimes succeeding) in emulating.