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A heated dispute has emerged between President Trump and Governor Newsom regarding proposed tariffs on foreign films. Newsom advocates for a significant federal film tax credit to boost job creation, while Trump criticizes foreign competition for harming the American film industry. The exchange has prompted concerns in the film sector, especially following production declines in recent years, as both leaders present contrasting visions for the future of cinema in the U.S.

California – A clash between President Donald Trump and California Governor Gavin Newsom has erupted over proposed tariffs on foreign films, with both leaders expressing starkly contrasting views on the future of the American film industry. Newsom has called for collaboration on a significant film tax credit, aiming to enhance job opportunities in California, while Trump criticized Newsom’s governance and suggested that the American film sector is declining rapidly due to foreign competition.

Governor Newsom took to social media to advocate for a robust federal partnership, stating that “California built the film industry — and we’re ready to bring even more jobs home.” He urged for the implementation of a $7.5 billion federal tax incentive scheme, which he claims would constitute the most substantial government subsidy for the film industry in the United States. Currently, California allocates $330 million annually for film tax incentives, a modest amount compared to Newsom’s proposed increase to $750 million.

This exchange follows Trump’s announcement of a sweeping 100% tariff on films produced outside the United States, declaring on a social platform that the American movie industry is “DYING a very fast death.” Trump conveyed intentions to meet with film executives to gain support for the tariffs, asserting that the foreign productions pose a “national security threat” and have contributed to a deteriorating landscape in American cinemas. His comments have raised considerable concerns within the film industry, leading to stock market declines among major studios, including Lionsgate and Warner Bros.

The U.S. film sector has faced formidable challenges, particularly since the COVID-19 pandemic in 2020 and the Hollywood strikes in 2023, which disrupted production levels. Industry reports indicate a concerning 22% decline in production in the first quarter of 2025 compared to the same period in 2024, with signs that recovery has not yet stabilized close to pre-pandemic levels.

Newsom’s proposed initiatives come amidst ongoing criticisms from Trump, who labeled the Governor as “grossly incompetent” during a meeting with Canadian Prime Minister Mark Carney. Trump accused Newsom of mismanaging the film industry and pointed to the foreign competition’s impact on its perceived decline. Despite their contentious rhetoric, Trump acknowledged that he maintains a favorable relationship with Newsom yet still directed blame at him regarding various issues affecting California, including the pressing challenges of wildfires.

Senator Adam Schiff from California has expressed support for a federal film tax credit while denouncing Trump’s tariff proposal as damaging. In response to the political discourse, notable late-night talk show hosts have ridiculed the tariff plan, questioning its logic and implications for the entertainment landscape.

Critics of the tariff strategy are advocating instead for increased tax credits, arguing that such fiscal policies would provide more substantial support to the struggling industry. Newsom emphasizes the necessity of partnerships with federal bodies to revitalize the film sector and has framed his initiative as a means to “Make America Film Again.” Without a national program currently in place, film tax incentive programs operate variably across different states in the U.S.

Amidst this clash of ideas, the film industry’s future remains uncertain as leaders on both sides present their visions for recovery and growth. The outcome of these initiatives and proposals will likely shape the landscape of American cinema in the years to come.

Trump and Newsom Clash Over Tariffs on Foreign Films

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