China to Restrict US Film Releases After Trump’s Tariff Hike

In a significant move impacting the film industry, China has announced plans to limit the number of American films permitted to screen within its borders. This decision follows the imposition of a staggering 125% tariff on Chinese imports by US President Donald Trump, a move that has prompted a retaliatory response from Beijing.

The China Film Administration commented on the developments, stating, “The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films.” This statement indicates a growing discontent in China towards American cinematic offerings as a result of escalating trade tensions.

Chinese market analysts suggest this restriction mirrors proposals made by influential Chinese bloggers earlier in the week, who warned that multiple tools for retaliation could be employed against US actions. Proposals included a significant reduction in the number of American films imported and an investigation into the intellectual property benefits received by American companies operating in China.

China has now established itself as the world’s second largest film market after the US, with domestic films increasingly outperforming Hollywood imports in recent years. The newly imposed measures represent a notable setback for western studios, with shares in major companies such as Walt Disney Co and Warner Bros Discovery Inc experiencing immediate declines following these announcements.

Notably, the recent success of Warner Bros’ animated feature “A Minecraft Movie” in China, which topped box office charts with ticket sales of USD 14.5 million, was significant in the context of an overall global total. In 2024, “Godzilla x Kong: The New Empire” grossed USD 132 million in China alone, contributing to a total of USD 572 million globally.

The first US film received approval for release in China 31 years ago, and the number peaked at over 60 films in 2018. Since then, however, the figure has steadily declined, as reported by the Chinese ticketing service Maoyan Entertainment, attributed largely to rising tensions between the two nations and the increasing popularity of local productions.

Recent successes of Chinese animated films, such as “Ne Zha 2,” which took USD 1.8 billion on home soil alone, highlight the changing landscape of the industry. This film has set records as both the highest-grossing film of 2025 thus far and the highest-grossing animated film in history.

Looking ahead, major Hollywood releases including “Mission Impossible The Final Reckoning,” “Superman,” “Jurassic World Rebirth,” and “Avatar Fire and Ash” were anticipated to contribute to a significant financial influx for cinemas in China by year-end. However, the recent restrictions have cast doubt on the projected USD 7.6 billion revenue for the Chinese film market in 2025, following a total of USD 5.8 billion in 2024.