On Thursday, the China Film Association (CFA) announced that it would moderately reduce the number of American films imported in response to the ongoing tariff war.
“The wrong move by the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films,” the statement read. “We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”
The move came a day after President Trump announced a 90-day tariff pause for several countries, while raising levies on Chinese imports to 125%. The tariff hike from Trump came in response to China’s move to impose an 84% tariff on U.S. goods.
Earlier in the week, reports from China indicated that officials were considering limiting or even banning Hollywood films, according to The Hollywood Reporter. Speculation intensified when two prominent Chinese figures—one a state media editor and the other the son of a former party chief—outlined potential countermeasures to Trump’s tariffs, including restrictions on imported American films.
Under current trade agreements, China had pledged to release 34 foreign films annually under revenue-sharing terms, granting overseas studios 25% of ticket sales.
“China is the world’s second-largest film market. We have always adhered to a high level of opening up to the outside world and will introduce more excellent films from the world to meet market demand,” the statement continued.
Once a crucial revenue source for Hollywood, China has now become an afterthought as geopolitical tensions rise. Chinese audiences, increasingly favoring domestic productions, have grown disenchanted with U.S. films. This shift was reflected by Ne Zha 2, released in January, which outperformed all American films to become the highest-grossing movie in a single market.
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