China Hits Back at Trump Tariffs by Targeting Hollywood A Retaliation with Deeper Stakes

China to increase imports of non-US films

U.S. President Donald Trump (78) announced an additional 145% tariff on Chinese goods, prompting China to raise its own tariffs on American imports to 125%, escalating the U.S.–China trade war—and now, Hollywood is caught in the crossfire.

On April 10, the Chinese government announced that, in retaliation, it would reduce the number of Hollywood films allowed to be released domestically.

China’s National Film Administration posted an official statement on its website on the 10th:

“The U.S. government’s unjust and indiscriminate imposition of tariffs on China will inevitably lead to a decline in domestic audiences’ favorability toward American films.”

It continued:

“In accordance with market principles and out of respect for audience choice, we will moderately reduce the number of U.S. films imported.”

The statement also emphasized:

“China is the world’s second-largest film market. We continue to advocate for high-level openness and, in response to market demand, will introduce more outstanding films from other countries.”

And China acted quickly. On the very next day, April 11, when Spanish Prime Minister Pedro Sánchez paid an official visit to China, the two countries signed an agreement to collaborate on films, according to the same site.

This move comes as Hollywood has already been struggling in China in recent years. Last year, Chinese productions dominated the domestic box office, with eight of the top ten films—including the No. 1 hit YOLO—being Chinese. Hollywood’s Godzilla x Kong: The New Empire placed ninth, while Japan’s Hayao Miyazaki (84) secured the tenth spot with The Boy and the Heron.

 

The reason Xi Jinping targeted Hollywood

In January of this year, the Chinese animated film “Nata: The Rampaging Demon Child” not only became a massive hit in China but also topped the weekend box office for three consecutive weeks in the U.S. after its release in February, with a total worldwide box office revenue of 14.5 billion yuan (approximately 300 billion yen). It surpassed the Hollywood animated film Inside Out 2 to become the highest-grossing animated film of all time. The film also ranked 5th overall in the global movie rankings, surpassing Star Wars: The Force Awakens, highlighting the rise of Chinese cinema.

In any case, China, with its population of 1.48 billion, remains the “second-largest” market in the world, and it continues to be a “goldmine” market for the U.S., surpassing Japan.

Additionally, the adventure-comedy film Minecraft: The Movie, starring Jason Momoa and Jack Black, which was released in China on April 4, became a massive hit, grossing approximately 14.5 million dollars (about 2.07 billion yen) over the weekend from April 4 to 6, ranking first in the Chinese box office. It also earned approximately 160 million dollars (about 23 billion yen) in North America during the same weekend. China is now the second-largest box office market after the U.S.

While comparisons cannot be made with the Japanese release, which is scheduled for April 25, the U.S. blockbuster Captain America: Brave New World, released in February, earned about 199.91 million dollars (about 28.5 billion yen) in North America, 7.55 million dollars (about 1.08 billion yen) in Japan, and 14.37 million dollars (about 2.05 billion yen) in China, earning twice as much as in Japan.

Hollywood movies are symbolic exports of the U.S., with markets worldwide, and reducing their number of releases in China would serve as a fitting form of retaliation and promotional material against the U.S.

Moreover, given that Hollywood is supported by many Democratic Party supporters, President Xi Jinping’s actions may also be an attempt to accelerate criticism against President Trump, whose ongoing tariff war with China impacts even the U.S. film industry. For China, this could be a move that causes more damage to America than the financial impact alone.

In any case, it would be a significant loss for Chinese movie fans if they could no longer enjoy American films as they have in the past, and the U.S. would lose substantial box office revenue from China. Moreover, the long-standing cultural exchange between the U.S. and China in the film industry could be severed, which would benefit neither side. A swift resolution to the U.S.–China tariff war is highly desired.