Just one day after President Donald Trump proposed a sweeping 100% tariff on movies produced outside the United States, California Governor Gavin Newsom extended an unexpected olive branch. On Monday, Newsom announced he would like to work with the Trump administration to establish a $7.5 billion federal tax incentive to boost domestic film production.
“America continues to be a film powerhouse, and California is all in to bring more production here,” Newsom said in a statement to Variety. “Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again.”
The comment came after Trump launched a surprise initiative Sunday evening, authorizing the Department of Commerce and the U.S. Trade Representative to begin the process of implementing a 100% tariff on all foreign-made films distributed in the United States.
President Donald Trump announced 100% tariffs on movies made outside the United States on Truth Social – Truth Social, @realDonaldTrump
“The Movie Industry in America is DYING a very fast death,” Trump wrote in a Truth Social post. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Newsom’s conciliatory tone, however, contrasted sharply with Trump’s earlier criticism of the California governor. During an Oval Office press conference Monday, the president took direct aim at Newsom.
Gavin Newsom speaking at an event – Office of the Governor of California, Public domain, via Wikimedia Commons
“Our film industry has been decimated by other countries, taking them out,” Trump said. “And also by incompetence. Like in Los Angeles, the governor is a grossly incompetent man. He’s just allowed it to be taken away from, y’know, Hollywood. Hollywood doesn’t do very much of that business.”
Despite the harsh rebuke, Newsom appears undeterred in working within the reality of the newly announced tariff. The California governor previously pledged to increase the state’s film incentive program from $330 million to $750 million annually. Now, with federal policy in flux, Newsom is pushing for a national tax incentive program to counteract the growing influence of international subsidies.
Industry professionals have long argued for such a program, often citing the loss of jobs to other nations that offer financial perks for production. These include Canada, the U.K., New Zealand, and Australia—countries that routinely lure high-budget films away from Hollywood with rebates, grants, and tax offsets.
Donald Trump clasps hands with Sylvester Stallone – YouTube, SkyNews Australia
California Senator Adam Schiff also voiced support for a federal solution on Monday, stating that he is working on legislation to establish a nationwide film incentive.
“I look forward to working with Republicans on this issue,” Schiff said, suggesting bipartisan interest may be possible despite current tensions.
Meanwhile, the White House has indicated that Trump’s tariff proposal remains in the exploratory phase.
Donald Trump speaks at his inauguration in 2017 – YouTube, ABC News
“Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again,” said White House spokesman Kush Desai.
Still, Trump’s announcement sent shockwaves through the entertainment industry. Major studio stocks slipped across the board Monday: Lionsgate fell 4.1%, Disney and Warner Bros. Discovery dropped 2%, Netflix slid 1.9%, and Paramount was down 1.6%.
President Donald Trump speaks at CPAC in 2017 – YouTube, The New York Times
Though the idea of a tariff on foreign films may face steep legal and logistical hurdles, the conversation has reignited the broader issue of keeping film production on U.S. soil. For now, Newsom’s surprise willingness to work with the Trump administration signals a rare opportunity for alignment between two longtime political adversaries—albeit one that may be as complicated as a Hollywood script.
How do you feel about Newsom offering incentives in the wake of Trump’s Hollywood tariff? Sound off in the comments and let us know your thoughts!
The real life American Psycho is trying to play the centrist so that he’s a viable candidate after 4 years. Hopefully people remember the lockdowns during which he showed his true monstrous face.
I have to ask: how is Cali going to pay this money? The state budget has seen negative returns for years now. Plus every policy Gruesome introduces just makes everything worse. Plus if you believe progressives like him, the trade war with China has already doomed the US despite the fact we’re seeing increased economic growth while China’s house of cards is collapsing at a record pace.
Giving tax money to Hollywood is as bad, if not worse, than giving it to NPR.