Newsom Wants To Team Up With Trump On $7.5B Plan To 'Make America Film Again'

A day after President Donald Trump called for tariffs on movies produced outside the U.S., California Gov. Gavin Newsom proposed an alternative — a massive, first-of-its kind federal tax credit program meant to boost the domestic entertainment industry.

Newsom said he wants to team up with the Trump administration to create a $7.5 billion federal film tax. It's unclear exactly how that would work, but it would likely be modeled after the state-level subsidies that are an already a key driver of the film industry everywhere from California to Louisiana. There is no national program in the U.S. like there is in the U.K. and many other countries.

Concerns about how outside competition is hurting a homegrown industry represents an unusual opportunity for harmony between Trump and Newsom. Newsom in recent months has focused on efforts to boost production in the Golden State amid economic challenges — including competition from other states and countries — while Trump over the weekend posted that the American movie industry was dying a "very fast death" because of incentives other countries are offering.

"California built the film industry — and we’re ready to bring even more jobs home," Newsom said in a social media post. "We’ve proven what strong state incentives can do. Now it’s time for a real federal partnership to Make America Film Again."

The New York Times offered a look at what the proposal could mean. While there are scant details for how it could work, California Sen. Adam Schiff told the Times his office was working on a federal film incentive proposal.

Trump in a Truth Social post on Sunday wrote that the Department of Commerce and other government agencies were being authorized to immediately begin the process of imposing a 100% tariff on all films produced abroad and sent to the U.S.

"This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda," Trump wrote.

Trump, however, offered no details on how to implement the tariffs, prompting widespread confusion in Hollywood.

Trump appointed Hollywood veterans Jon Voight, Sylvester Stallone and Mel Gibson in January as "special ambassadors" to bring Hollywood back, as he put it, "bigger, better and stronger than ever before."

Voight and his business partner, Steven Paul, met with Trump over the weekend, sharing their suggestions for boosting domestic film and TV production. In a statement, Voight and Paul said they outlined a plan that included tax incentives and subsidies for producers and theater owners.

"The president loves the entertainment business and this country, and he will help us make Hollywood great again," Voight said in a statement. "... We look forward to working with the administration, the unions, studios, and streamers to help form a plan to keep our industry healthy and bring more productions back to America."

Studios have been using foreign locations instead of Hollywood for years, taking advantage of tax incentives and lower production costs.

Increased tax credits and cash rebates offered by foreign countries are attracting productions. Ampere Analysis predicts $248 billion will be spent globally to produce content in 2025.

Disney, Netlfix and Universal Pictures film movies and TV shows in Canada and Britain.

The International Alliance of Theatrical Stage Employees union issued a statement Monday saying it agrees that international competition has threatened the Hollywood film industry and its workers, and the union is talking to the Trump administration about finding solutions.

"IATSE recommended that the Trump administration implement a federal film production tax incentive and other domestic tax provisions to level the playing field for American workers," IATSE President Matthew D. Loeb said in a statement. "We await further information on the administration's proposed tariff plan, but we continue to stand firm in our conviction that any eventual trade policy must do no harm to our Canadian member — nor the industry overall. We seek reciprocal trade practices that ensure fair competition for all IATSE members."

Rep. Laura Friedman, D-Burbank, said she shares the goal of halting runaway production and supporting film and TV workers.

"If President Trump is serious about maintaining a dominant U.S. film industry and keeping production jobs in the United States, I invite him to join me in fighting for a national film tax credit that levels the playing field with overseas incentives," Friedman said in a statement. "I've been meeting with lawmakers, labor unions, and industry leaders to make this a reality — because we know this approach works, as we've seen in states like California and New York."

City News Service contributed to this report.