Trump’s tariffs could lead to China banning American films, risking $500 million loss for blockbusters

China's retaliation against US tariffs may put Hollywood’s access to the world’s second-largest box office in jeopardy

In a sharp escalation of the ongoing trade war, China has announced plans to ban the import of Hollywood films in response to U.S. President Donald Trump's increased tariffs on Chinese goods. The move follows China's vow to "fight to the end" against what it called the "blackmail nature" of the United States. A Chinese journalist linked to the Communist Party revealed on BBC's Radio 4 program that the country is considering a ban on U.S. films, alongside other retaliatory measures such as imposing additional tariffs on U.S. agricultural products and blocking American poultry imports.

If China proceeds with this drastic action, it could have a major impact on Hollywood's revenue from the world's second-largest box office. In 2024, U.S. films grossed $585 million in China, making up about 3.5% of the country’s $17.71 billion box office. Upcoming blockbuster films, including Jurassic World: Rebirth, The Accountant 2, and the latest Mission Impossible sequel, would be poised to lose out on hundreds of millions of dollars in potential earnings from the Chinese market.

The escalating tariffs are part of a broader trade dispute. President Trump has threatened to impose an additional 50% tariff on China if it does not withdraw its retaliatory tariffs, which would bring the total U.S. duties on Chinese goods to 104%. In response, China's commerce ministry labeled these threats as "blackmail" and reaffirmed its commitment to "fight to the end."

“'Tariff wars have no winners, and protectionism has no way out. Chinese people don't make trouble, but are not afraid of it. Pressure, threats and blackmail are not the right way to deal with China,'” said Lin Jian, a foreign ministry spokesman.

The potential ban would have a devastating impact on Hollywood's revenue from China, as major films like Mission Impossible rely heavily on international markets to maximize their profits. The global film industry, already facing uncertainty due to shifting market dynamics, would be rocked by such a move.

With President Trump set to impose further tariffs unless China backs down, the stakes have never been higher for Hollywood. The U.S. film industry now faces the prospect of losing access to one of its largest and most lucrative markets, all while navigating a volatile and uncertain global economic landscape.