Two critics of President Donald Trump - California Democratic Gov. Gavin Newsom and Sen. Adam Schiff are now proposing to work with the Republican administration on federal tax incentives to bring back film production from overseas.
Newsom sued the Trump administration in federal court last month, saying what he said was "an unprecedented tariff regime" and said he was "connecting with our international partners to protect California's work and industry." But, as Trump calls attention to how production homes in the United States are becoming increasingly international — harming middle-class Hollywood workers who make a living from filming in the Los Angeles area — Newsom in a more collaborative tone.
"California has established a film industry and we are ready to bring more work home," Newsom wrote on Monday. "We have proven what strong national incentives can do. It's time to build a real federal partnership to make American movies."
Newsom added: "@potus, let's do it."
The White House says "no final decision" on foreign dynamic tariffs as Trump weighs "national security"
Gov. Gavin Newsom and California Attorney General Rob Bonta have announced a federal lawsuit challenging the Trump administration’s use of emergency powers to impose comprehensive tariffs on April 16, 2025. (Photo by Justin Sullivan/Getty)
Newsom said in a statement to the New York Times that he wanted to work with the Trump administration to develop a $7.5 billion federal tax credit program to strengthen the television and film production industries.
According to the Times, this will be the first federally-level incentive program for the U.S. film industry, and more than thirty states already have incentive programs, not more than a billion dollars.
Meanwhile, D-Calif's Schiff criticized Trump's idea of imposing tariffs to curb foreign film production.
"I share the government's desire to return movies to the United States. While blanket tariffs on all movies have unexpected and potentially destructive effects, we have the opportunity to work together to transfer major federal film tax credits to work in the U.S. in the industry," Schiff said in a statement "Deadline". "I welcome the opportunity to work with the government and my Republican colleagues to bring back the runaway production through globally competitive federal film incentives."
The White House said Monday that as the administration is “exploring all options” to “exploring all options in Trump’s direction” to protect our country’s national and economic security while making Hollywood great again. ”
On September 9, 2024, the Hollywood logo on Mount Lee is in Los Angeles. (Kirby Lee/Getty Images)
Trump announced for the first time in his Truth Social post on Sunday that he is authorizing the Department of Commerce and the U.S. Trade Representative to “start immediately to start 100% tariffs on all movies in any film made on foreign land.”
President Trump's Hollywood ambassador Jon Voight makes a proposal to "make Hollywood great again"
Speaking to journalists outside the White House, Trump further asserted that Hollywood was "destroyed" by "seriously incompetent governors" and foreign countries, attracting American production houses with "large amounts of money."
Over the weekend, one of Trump's Hollywood ambassadors, Jon Voight, along with special counsel Steven Paul, provided the president with a "full plan" to save the film and television industry at a meeting in Mar-a-Lago.
“While President Trump regularly restores American cultural dominance with Hollywood ambassadors including Jon Voight, Trump himself has proposed the idea of using tariffs to make Hollywood stand out again,” White House spokesman Kush Desai said in a statement to Fox News on Monday.
President Donald Trump spoke to reporters on the South Lawn of the White House on May 4, 2025. (tasos katopodis/getty image)
Voight and Paul met with “dozens of leading film and television organizations (guilds, unions, studios and streamers) about what changes needed to increase domestic film production.”
The meeting was held in person at Trump of Mar-A-Lago, which included Scott Karol, president of SP Media Group/Atlas Comics.
"The proposal includes federal tax incentives, several major changes to the tax laws, the establishment of co-production treaties with foreign countries, and infrastructure subsidies for theater owners, film and television production companies, and post-production companies," the statement said. "The proposal also includes a focus on job training and tariffs in certain limited circumstances."
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"The president loves the entertainment business and the country, and he will help us make Hollywood great again," Voight said.
Tracy Wright and Lawrence Jones of Fox News contributed to the report.