The China Film Administration said on Thursday that it would "moderately reduce" the number of American films imported in response to the latest wave of tariffs. Trump on Wednesday increased tariffs on China to 125 percent, and cut some tariffs on countries that were negotiating with the US.
The China Film Administration said in a statement, "The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films. We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported," per Variety.
In 1994, China began importing 10 American films per year through a revenue-sharing model, Reuters reported. While China is the world’s second-largest film market, enthusiasm for American movies post-Covid has waned. Domestic films have accounted for around 80 percent of annual box office revenue since 2020 in China, up from around 60 percent previously.
Only one American film is in the top 20 for China’s all-time box office list, with that film being, “Avengers: Endgame,” which saw a revenue of 4.25 billion yuan, or around $579.83 million.
In announcing the increase in tariffs on China, Trump wrote, "Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable."
