'Make America Film Again': Newsom proposes working with Trump on $7.5B Hollywood tax credit

RELATED COVERAGE: Trump orders 100% tariff on foreign films

Trump claims the move will protect American jobs and combat what he called "propaganda from abroad."

LOS ANGELES - California Gov. Gavin Newsom is responding to President Donald Trump's proposal for 100% tariffs on foreign movies.

What we know:

Newsom on Monday proposed a federal film tax credit worth $7.5 billion to counteract Trump's tariff proposal and support the U.S. entertainment industry.

PREVIOUS COVERAGE: Trump orders 100% tariff on foreign films

According to Newsom, this federal initiative would be modeled after California's proposed $750 million state program, which aims to increase the production tax credit cap and expand qualifying productions. 

"California built the film industry — and we’re ready to bring even more jobs home. We’ve proven what strong state incentives can do. Now it’s time for a real federal partnership to Make America Film Again," Newsom wrote on X. "@POTUS, let’s get it done."

As first reported by the New York Times, this would be the first federal-level incentive program for the film industry in the U.S.

What we don't know:

Details of how the proposed $7.5 billion federal tax credit would function have not been disclosed. 

Trump later said that he would meet with industry executives about the proposal, but a lot remains unclear about how such an import tax would be implemented.

Foreign Films Tariff:

Trump said on Sunday plans to impose the 100% tariff "on any and all movies coming into our country that are produced in foreign lands" are due to national security concerns and the decline of the American movie industry.

"The Movie Industry in America is DYING a very fast death," Trump wrote on Truth Social, citing how other countries offer incentives to inspire American filmmakers and studios to work outside the United States. 

Disney, Netflix, and Universal Pictures film in Canada and Britain.

Why you should care:

The proposed tariffs and tax credit scheme could significantly impact the U.S. film industry, affecting production locations, job opportunities, and the overall economic landscape.