Introduction to the Tariff Proposal
The governor of California, Gavin Newsom, has strongly opposed a proposal by US President Donald Trump to impose a 100% tariff on films made outside of the USA. Newsom’s press office described the proposal as "100% stupid".
Trump’s Statement
Trump mentioned the governor of California on his social platform, referring to him as "weak and incompetent" and stating that California was particularly hard hit by film production in other countries. This statement was made in response to a news report about falling studio share prices after Trump initially introduced the tariff proposal in May.
Newsom’s Response
Newsom’s press office stated that the governor had previously warned Trump that his actions would cause irreparable damage to the US film industry. Newsom also wrote about the issue, referencing a report on the increase in applications to the Californian tax credit program and stating, "Almost like we know what we do. Almost like Donald Trump, it’s absolutely not."
Expansion of the Californian Credit Program
Newsom recently pushed for the expansion of the Californian credit program, which increased its annual financing from $330 million to $750 million. The California Film Commission reported a 400% rise in submissions for the first round of loans since the expansion took effect.
Reactions from California Democrats
Newsom was not the only California Democrat to react to Trump’s proposal. US Senator Adam Schiff posted on social media, stating that he strongly supports bringing film production back to California and that the US Congress should consider a bipartisan federal film incentive to bring back production and jobs instead of imposing a tariff.
Industry Reaction
Representative Laura Friedman also responded to Trump’s proposal, stating that she was relieved the president realized the importance of the domestic film and TV industry. She warned that the 100% tariff on foreign films would increase costs for consumers. Industry groups have not yet officially responded to Trump’s new tariff call, but it is unlikely that immediate action will be taken due to ongoing last-minute talks in Washington to avoid a government shutdown.
Proposed US Tax Credit
A US tax credit for film production was one of the suggestions made by Jon Voight, Trump’s "Hollywood ambassador," in May. Voight proposed an extension and expansion of the tax deployment provision of § 181, which is currently set to expire in 2025. A cross-party group of US congress members introduced a draft law to extend and strengthen section 181, but it is unclear whether the bill has made progress or received more support among legislators.
