Newsom Urges Trump To Back $7.5 Billion Film Incentive

Topline

California Gov. Gavin Newsom on Monday proposed collaborating with President Donald Trump and his administration on a $7.5 billion federal incentive to help domestic movie production, a day after Trump announced plans to impose a 100% tariff on films produced outside the U.S.

California Governor Gavin Newsom proposed a $7.5 billion federal tax incentive to help support the … More entertainment industry.

Variety via Getty Images

Key Facts

In a statement shared with various news outlets, Newsom said America was a film powerhouse and California was “all in to bring more production here.”

The governor said he is “eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again.”

Newsom said he wants to work with the Trump administration to craft a $7.5 billion federal film tax credit scheme to help support the entertainment industry.

The comments were echoed in an X post late Monday night, where Newsom wrote California has “proven what strong state incentives can do” and it was now time for a “real federal partnership” as he tagged the President’s official X account and added: “let’s get it done.”

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How Would The Proposed Film Tax Credit Work?

According to the Hollywood Reporter, Newsom’s proposal would likely be modeled around California’s proposed $750 million a year state-level tax credit program. The state proposal, which is moving through the state’s legislature, will supersede an existing $330 million a year state tax credit for films. When Newsom announced the expanded state credit proposal last year, he suggested former Vice President Kamala Harris would back a larger federal incentive if she were elected to the White House.

What Do We Know About Trump’s 100% Tariffs On Foreign Shot Films?

In a Truth Social post on Sunday, Trump said he has ordered his administration’s trade officials to impose a 100% tariff on all films produced abroad. In the post, the president claimed “Movie Industry in America is DYING a very fast death,” as other countries were offering “all sorts of incentives” to draw “our filmmakers and studios away from the United States.” He also alleged, without evidence, that this was a “concerted effort” by foreign countries to bring their “messaging and propaganda” into the U.S. and therefore a “National Security threat.” The president said he has authorized the Commerce Department and the U.S. 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,” adding that “WE WANT MOVIES MADE IN AMERICA, AGAIN!” In his post, the president did not clarify how such a tariff would be applied, and it is unclear how movies that are shot in mixed locations (both domestic and foreign) will be impacted.

What Did Trump Say About Newsom?

When asked about the film tariff by reporters, Trump took a shot at Newsom, saying: “I’ve done some very strong research over the past week, and we’re making very few movies now. Hollywood is being destroyed. Now, you have a grossly incompetent governor that allowed that to happen, so I’m not just blaming other nations, but other nations have stolen our movie industry.” At the time, Newsom’s office told Deadline: “We believe he [Trump] has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law.”

Tangent

Earlier on Monday, Sen. Adam Schiff, D-Calif., commented on Trump’s tariff plan and said he shared the president’s “desire to bring movie-making back to the United States” but warned that “blanket tariffs” could lead to “unintended and potentially damaging impacts.” The Senator said this was an opportunity to “work together” and pass a “major federal film tax credit to re-shore American jobs in the industry.”