California Gov. Gavin Newsom took a swipe at President Donald Trump recently after Trump said he would impose a 100% tariff on movies made outside the U.S., something Newsom said would burden Americans even more.
Newsom Says Prices Are Already Too High
“You're already paying more for eggs, coffee, toys, shoes, electricity, furniture, cars, and flights,” Newsom wrote on X. “Now, Trump wants to raise taxes to see the movies. PAY MORE AND ENJOY NOTHING. That's Donald Trump's America.”
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The governor's remarks came just hours after Trump announced on Truth Social that he will be imposing a 100% tariff "on any and all movies that are made outside of the United States.”
Trump claimed foreign countries have taken over the U.S. movie industry “just like stealing ‘candy from a baby,'” and pointed the finger at Newsom directly. “California, with its weak and incompetent Governor, has been particularly hard hit!” Trump wrote.
Hollywood Blindsided By The Plan
The movie industry was already caught off guard when Trump floated the same idea back in May. "It's shocking and would represent a virtually complete halt of production,” one industry insider told CNN at the time. “But in reality, he has no jurisdiction to do this and it's too complex to enforce.”
Trump has argued that U.S. filmmakers are being pushed abroad by tax incentives offered in other countries. However, the state of California and some American cities have also implemented similar tax breaks to keep productions local.
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United Talent Agency Vice Chairman Jay Sures told CNN in May that the economics are clear. "It's cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper," he said.
No Timeline, No Details
Trump did not say when the tariff would take effect or how it would be enforced. If implemented, it would be the first time the U.S. has imposed a tariff on a service instead of a physical product.
According to CNN, the box office revenues in the U.S. are still recovering from the pandemic. The total domestic gross hasn't crossed $9 billion since 2019, and audiences continue to shift toward streaming.
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