California Gov. Gavin Newsom said he is ready to work with President Trump to bring more film and television money back to the U.S. and back to California. This comes just a day after Trump proposed a 100% tariff on all foreign-made movies, claiming “the movie industry in America is dying a very fast death.”
Background on global filming trends
For context, an analysis from 2000 to 2019 found that about one-third of top-grossing films were shot outside the U.S.
While Newsom’s office initially expressed skepticism over Trump’s tariff announcement, the tone has now shifted.
Legal questions around tariffs
Bob Salladay, Newsom’s senior communications advisor, told Deadline that they believe Trump lacks the legal authority to impose tariffs under the International Economic Emergency Powers Act since “tariffs are not listed as a remedy under that law.”
However, another spokesperson told The Wrap that Newsom’s push to double California’s state tax credits reflects his commitment to keeping jobs local. His office also said they would review any formal tariff proposal from the federal government.
Newsom calls for federal partnership
On Monday night, Newsom posted on X:
California’s existing tax credit program
Newsom is now pushing for a federal tax credit program worth at least $7.5 billion.
A spokesperson told The Washington Post this would be the largest government tax initiative for the film industry in U.S. history.
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California’s “Film and Television Tax Credit” Program currently offers $330 million annually, with a proposal to expand to $750 million.
California currently offers a “Film and Television Tax Credit” program that runs through June 30. Selected productions can receive a 20% to 30% tax credit, lowering what they owe in state tax. Newsom’s office said the credit has generated more than $26 billion in economic activity and created thousands of jobs since 2009.
The goal is to keep California competitive with states like Georgia and New York, which have attracted many productions with their own tax incentives.
Hollywood waits for details
Trump’s sudden tariff announcement left much of Hollywood scrambling and confused on Monday, but details remain unclear.
If Trump and Newsom do manage to work together – something the White House has not yet commented on – it could help both the administration and states like California push more productions to stay in America.
