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Newsom Seeks to Partner With Trump on Hollywood Tax Incentives

By    |   Tuesday, 06 May 2025 10:22 AM EDT

California Gov. Gavin Newsom is looking to work with President Donald Trump on his recently proposed tariffs on films made outside the U.S. to boost domestic production, The New York Times reported Monday.

On Sunday, Trump announced that he was directing the Department of Commerce and the Office of the U.S. Trade Representative to impose a 100% tariff "on any and all Movies coming into our Country that are produced in Foreign Lands." Newsom, a Democrat, is seeking to partner with the Trump administration to create a $7.5 billion tax credit to help return film production to American soil.

"America continues to be a film powerhouse, and California is all in to bring more production here," Newsom said in an official statement. "Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again."

If successful, the Newsom-proposed tax incentives would represent the largest such government aid ever given for the industry and the first federal assistance for film production. There are currently over three dozen states that offer some form of tax incentive to film and television production companies, but there is no national program. The outlet noted that California gives out $330 million a year to keep production in the Golden State.

When pressed for clarification on how the Trump tariffs might work, the White House said "no final decisions on foreign film tariffs have been made. The administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again," said White House spokesman Kush Desai to the Hollywood Reporter.

The Newsom proposal is the latest occurrence in the fluctuating relationship the governor has with Trump, seeking to align himself on certain issues and push back on others. In April, Newsom and the state of California sued the Trump administration over what they allege is the unlawful imposition of tariffs, arguing that such action requires approval from Congress.

In January, Trump created a new Hollywood initiative to be led by screen legends Jon Voight, Sylvester Stallone, and Mel Gibson, calling the trio "special ambassadors" to help return Hollywood to its former glory.

On Monday, Voight said he had sent Trump a proposal to "make Hollywood great again," noting that his plan calls for "tariffs in certain limited circumstances" and asked for changes in the tax code and co-production treaties with foreign countries, as well as providing infrastructure subsides to cinema owners.

James Morley III

James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature. 

© 2025 Newsmax. All rights reserved.


Politics
California Gov. Gavin Newsom is looking to work with President Donald Trump on his recently proposed tariffs on films made outside the U.S. to boost domestic production. On Sunday, Trump announced that he was directing the Department of...
hollywood, tariffs, trump, newsom, film production
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2025-22-06
Tuesday, 06 May 2025 10:22 AM
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