Gavin Newsom Proposes $7.5B Federal Film Incentive Amid Trump's Tariff Plans

California Governor Gavin Newsom has responded to President Donald Trump's call for 100% tariffs on films produced outside the U.S. by proposing a $7.5 billion federal tax credit to support domestic film production. Newsom argues that this federal incentive, modeled on California's expanded $750 million state tax credit, would more effectively bolster the U.S. film industry than punitive tariffs. He contends that other countries' incentives are drawing American production overseas, and a national subsidy would help reverse this trend. Trump, meanwhile, claims the American film industry is in decline due to foreign competition and has authorized his administration to implement steep tariffs, describing the issue as a national security threat. Newsom has publicly invited the Trump administration to collaborate on this federal partnership, but so far the White House has not responded to his proposal. The initiative would be the largest government subsidy for film in U.S. history and the first of its kind at the federal level.