California Governor Gavin Newsom responded Monday night to President Donald Trump’s suggestion of a 100% tariff on films produced outside the United States, instead proposing a $7.5 billion tax credit to support the industry.
Trump’s tariff proposal surfaced on Sunday as a strategy to bring Hollywood production back to the U.S., particularly after many filmmakers opted to shoot in places like Canada and South Africa to cut costs.
The president’s idea received support from labor unions representing behind-the-scenes workers, such as the Teamsters, who applauded him for prioritizing American workers.
However, Hollywood studios have been cautious, as executives traditionally lean towards Democratic contributions, advocating for tax incentives rather than tariffs, which some media outlets have criticized.
Reportedly, Newsom expressed his desire for the president to collaborate with him, tapping into the $7.5 billion federal tax credit as more beneficial for Hollywood.
Additionally, apart from the federal tax credit, Newsom is working on legislation to expand California’s existing film and television tax credit program from its current $330 million to $750 million annually.
As of now, it appears that the Trump administration has shown little interest in accepting Newsom’s proposition. The president, who spoke about the proposed tariffs earlier on Monday, has previously criticized the decline of film production within California.
In a somewhat related note, Oscar-winning actor John Voight, known for his conservative views, is reportedly acting as an intermediary to foster increased production within the struggling entertainment sector.
Meanwhile, Senator Adam Schiff, who has represented Hollywood interests in Congress, has not publicly addressed Trump’s tariffs on foreign films, which reflect partisan issues.
