In a retaliatory move against newly increased U.S. tariffs, China announced it will immediately restrict the number of American films imported into the country, further escalating tensions between the two economic powers.
The decision, announced by the National Film Administration (NFA) in Beijing, comes just days after President Donald Trump imposed a significant increase in tariffs on Chinese goods—raising them from 125% to 145%. The NFA stated on its website that the new tariffs have negatively impacted China’s demand for American movies, prompting the agency to “moderately reduce” imports.
“We will follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported,” the NFA said in its statement.
President Trump was asked about China’s decision during a cabinet meeting on Thursday. He downplayed the move, saying, “I think I’ve heard of worse things,” prompting laughter from those in attendance.
According to industry experts cited by Reuters, the financial impact of the decision on Hollywood is expected to be minimal, largely because American films have seen a decline in Chinese box office performance in recent years. While China was once viewed as a critical growth market for Hollywood, domestic Chinese films have increasingly outperformed American imports.
For decades, China permitted the import of about 10 Hollywood films annually. However, U.S. titles now account for only about 5% of total box office receipts in the country. Additionally, Hollywood studios receive just 25% of ticket sales revenue from China—half of what they typically earn in other markets.
Recent box office trends further reflect the shift. Pixar’s Inside Out 2, for example, was overtaken by China’s own Ne Zha 2 as the highest-grossing animated film in the country.
It remains uncertain how China’s new restrictions will affect major upcoming U.S. releases. While Disney has reportedly secured permission to release its new Marvel film Thunderbolts on April 30, other blockbusters such as Tom Cruise’s Mission: Impossible – The Final Reckoning and James Gunn’s Superman may face challenges in gaining approval.
The move underscores growing tensions between Beijing and Washington, as the U.S. continues to impose higher tariffs on Chinese goods while signaling reduced tariffs for countries that choose not to retaliate. President Trump reiterated on Thursday that nations not responding with countermeasures would see their tariffs reduced to a baseline 10%.
