The clash between President Trump and California Governor Gavin Newsom escalated on Tuesday, following Governor Newsom’s request for federal cooperation to extend massive film industry tax incentives. This request came just as the President announced a contentious new policy that would introduce soaring tariffs on all films produced outside of the United States, aiming to bolster domestic film production, but affecting the international cinema trade significantly.
In a momentous plea through a post on the social media platform X, Governor Newsom emphasized, “California built the film industry — and we’re ready to bring even more jobs home. We’ve proven what strong state incentives can do,” adding, “Now it’s time for a real federal partnership to Make America Film Again.” This was a clear nod towards enhancing the synergy between state and federal measures to rejuvenate the American cinematic landscape, which according to Newsom, was inherently crafted by Californian innovation and commitment.
The film sector has indeed faced a tumultuous period, with significant downturns in production levels caused by the unprecedented COVID-19 pandemic in 2020 and exacerbated by industry-wide strikes in 2023. Reporting from CBS News highlighted that there was a notable 22% drop in movie and television production in the first quarter of 2025 compared to 2024 figures, underscoring the urgent need for revitalization.
Compounding this context, last year Governor Newsom, in conjunction with Los Angeles Mayor Karen Bass, lobbied for an augmented budget for California’s annual film tax credits, boosting it from $330 million to an ambitious $750 million. This move was aimed at catalyzing more film production within the state, which they hoped, in turn, would trigger economic and cultural dividends for the region.
Despite the collaborative call from Newsom and other state officials, President Trump was swift with his critique. In a stark comment on Truth Social, the President condemned the current strategies as insufficient, stating, “the nation’s movie industry is DYING a very fast death.” His solution, controversially, involved imposing a 100% tariff on all films produced outside the U.S. – a strategy he believes will rescue the faltering domestic industry.
The discord between the federal approach and state initiatives became more pronounced during a press encounter in the Oval Office. President Trump, who was meeting with Canadian Prime Minister Mark Carney, did not hold back his disdain for what he termed as “grossly incompetent” management by Newsom, blaming it for driving the film industry out of the U.S. He sarcastically nicknamed Governor Newsom ‘Gavin Newscum’, especially criticizing the California High-Speed Rail project, which he described as a wasteful venture with horrendous cost overruns – “the worst cost overrun thing I’ve ever seen.”
However, among the barbs, Trump acknowledged some past positive interactions with Newsom, noting, “And Gavin, you know, I always like Gavin, had a good relationship with him.” This mixed sentiment carried into a variety of discussions, from critiques of state leadership to federal initiatives aimed at addressing national challenges, such as environmental crises exemplified by Trump’s claims of aiding California during the devastating January wildfires by providing emergency water resources, which he argued could have mitigated the severity of the fires.
In his concluding remarks, while also touching upon his recent visit to fire-ravaged areas in Los Angeles alongside the First Lady, President Trump issued a final challenge to Governor Newsom hinting at a political litmus test; he mused on the prospect of Newsom running for the presidency, concluding that setbacks like the high-speed rail project might undermine his potential candidacy.
This ongoing back-and-forth not only underscores the complex interplay between state leadership and federal oversight but also foregrounds the pivotal role policy decisions play in shaping the economic and cultural contours of industries that are nationally significant, like the film industry. With both leaders holding forth starkly different visions, the path towards harmonizing their goals remains mired in political rhetoric, with tangible outcomes still hanging in the balance. As stakeholders on both sides watch closely, the unfolding policy decisions will substantially dictate the future trajectory of the American film industry and the broader cultural economy.
