A day following President Donald Trump’s suggestion of a comprehensive 100% tariff on films originating from outside the U.S., California Governor Gavin Newsom extended an unanticipated gesture of peace. On Monday, Newsom expressed his desire to collaborate with the Trump administration in creating a $7.5 billion federal tax break to stimulate domestic movie production within the United States.
America remains a dominant force in cinema, and California is keen to boost film production within its borders,” Newsom stated to Variety. “Leaning on our effective state initiative, we’re excited to collaborate with the Trump administration to enhance local production even further, aiming to revitalize America’s film industry.
The remark was made following Trump’s unanticipated move on Sunday night, directing the Department of Commerce and the Office of the U.S. Trade Representative to start the procedure for imposing a 100% tax on all foreign movies screened within the USA.
Trump recently posted on Truth Social: “The American Movie Industry is rapidly declining.” He added that other countries are providing incentives to lure away U.S. filmmakers and studios, causing significant damage in Hollywood and other parts of the United States. Trump sees this as a deliberate strategy by foreign nations, posing a threat to our national security. He also believes it’s a means for propagating messages. As a result, he has authorized the Department of Commerce and the U.S. Trade Representative to immediately initiate the process of imposing a 100% tariff on all movies produced abroad that are shown in the United States. Trump wants to revive movie production within America once more.
As a film enthusiast putting things into my own words, I’d say: While I, myself, was adopting a conciliatory approach, it stood in stark contrast to Trump’s previous criticisms of California’s governor, Newsom. During Monday’s Oval Office press conference, the president didn’t hold back when it came to taking aim at me directly.
Trump stated that our movie industry has been significantly weakened by other nations and poor management. In particular, he criticized the governor of Los Angeles for being incompetent, claiming that this ineptitude has led to a loss of control over Hollywood, causing it to generate less revenue.
In the face of strong criticism, Governor Newsom seems unfazed and continues his efforts to work within the constraints of the recently announced tariff. Previously, he had promised to expand California’s film incentive program from $330 million to $750 million per year. Now, with federal policy changing, he is advocating for a national tax incentive program to counterbalance the growing impact of international subsidies.
Experts in the field have consistently advocated for such a program, frequently pointing out the jobs being taken by other countries with attractive financial incentives for production. These include Canada, the United Kingdom, New Zealand, and Australia – nations that regularly attract high-budget films from Hollywood with rebates, grants, and tax reductions.
On Monday, I too expressed my backing for a federal approach, and I’m actively crafting legislation designed to create a nationwide film incentive program. California Senator Adam Schiff and I share this vision.
Schiff expressed eagerness for collaboration with the Republicans on this matter, hinting that there might be room for bipartisan cooperation, despite the ongoing strains.
To clarify, I’m currently finding that the White House is signaling that President Trump’s tariff plan is still under active consideration and examination at this point in time.
Kush Desai, White House spokesperson, stated that no definite decisions about foreign film tariffs have been reached yet, but the Administration is considering every possible approach to fulfill President Trump’s order regarding the protection of our nation’s safety and prosperity, as well as revitalizing Hollywood.
Despite Trump’s declaration causing a significant stir in the entertainment world, shares of major studios took a hit on Monday. Lionsgate dipped by 4.1%, Disney and Warner Bros. Discovery saw a decrease of 2%, Netflix experienced a drop of 1.9%, and Paramount fell by 1.6%.
The proposal of imposing tariffs on foreign films could encounter significant legal and practical challenges, but it has sparked a discussion about maintaining film production within U.S. borders. At this point, Newsom’s unexpected openness to collaborate with the Trump administration presents a unique chance for agreement between two historical political rivals – an opportunity that might be as intricate as a Hollywood plot.
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2025-05-06 20:36