China targets US films in retaliation of tariffs; Trump responds
China’s recent announcement of immediate restrictions on imported American films in retaliation against President Donald Trump’s escalated tariffs on Chinese goods has sparked a new wave of tensions between the two economic powerhouses.
During a cabinet meeting, President Trump nonchalantly responded to China’s move, stating, “I think I’ve heard of worse things,” which elicited laughter from those present. However, industry experts predict that the financial impact of this restriction on American films in China may be minimal, considering the decline in box office returns in recent years.
For three decades, China has been importing 10 Hollywood movies annually. However, the National Film Administration (NFA) in Beijing stated on its website that Trump’s tariffs would further dampen the demand for American movies in China. The NFA emphasized that they would adhere to market rules, respect audience choices, and moderately reduce the number of American films imported.
Once considered a lucrative market for Hollywood, China has now seen a shift in preference towards domestic movies, which are outperforming American films. For instance, “Ne Zha 2” surpassed Pixar’s “Inside Out 2” to become the highest-grossing animated film of all time. Hollywood movies now contribute only 5% to the overall box office revenue in China, with studios receiving a mere 25% of ticket sales, unlike other markets where profits are significantly higher.
It remains uncertain whether China will permit the release of several major blockbusters scheduled for this year. While Walt Disney secured approval to premiere the new Marvel superhero movie, “Thunderbolts,” other highly anticipated films like Tom Cruise’s “Mission Impossible – The Final Reckoning” and James Gunn’s “Superman” could face jeopardy.
The escalation in tensions between the US and China intensified as the White House announced a 145% increase in tariffs on Chinese goods. In contrast, Trump expressed willingness to reduce tariffs on countries that did not retaliate against the US to a baseline of 10%.
The impact of China’s restriction on imported American films underscores the intricate relationship between the two nations in the realm of entertainment and commerce. As the trade war continues to unfold, the future of Hollywood’s presence in the lucrative Chinese market remains uncertain.
Greg Wehner, a breaking news reporter for Fox News Digital, contributed to this report. For more updates and news, follow Greg on Twitter @GregWehner or reach out via email at Greg.Wehner@Fox.com.
