Gavin Newsom skewered Trump’s plan to slap tariffs on everything from eggs to movies with just five stinging words.
“PAY MORE AND ENJOY NOTHING,” the governor of California posted on X, adding, “That’s Donald Trump’s America.”
“You’re already paying more for eggs, coffee, toys, shoes, electricity, furniture, cars, and flights,” Newsom wrote, adding, “Now, Trump wants to raise taxes to see the movies.”
The governor’s post was a response to President Trump’s Monday rant on Truth Social, in which he said he would impose a “100% tariff on any and all movies that are made outside of the United States.”
Trump’s Truth Social post began by calling out Newsom: “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing “candy from a baby.” California, with its weak and incompetent Governor, has been particularly hard hit!”
In May, Trump made a similar proposal, which led to a decline in stock prices for many top Hollywood studios and streaming services. At that time, Newsom suggested a federal tax incentive to keep more production in the U.S. as a countermeasure to potential tariffs, which never took effect.
Hollywood production companies often outsource because international sites offer lower labor costs and more favorable tax incentives than those in California. In July, Newsom expanded California’s Film and Television Tax Credit Program, aiming to keep more film production in the state.
A CBS News poll conducted late last month found that most Americans describe the U.S. economy as “uncertain” and “struggling.”
Despite uncertain American opinion, the president’s U.N. speech suggested that he remains optimistic about the impact of current tariffs on the economy.
A fact-check of the president’s claims found that while eggs, mortgage rates, and gas prices are down compared to when Trump took office, overall grocery and energy prices have continued to rise.
In terms of moviegoing in the U.S., the industry has rebounded since its pandemic low, with the domestic box office reaching a post-pandemic peak of over $8.9 billion in 2023, before slipping in 2024.
It is still unclear how Trump plans to impose tariffs on foreign-made movies, as this would be the first time such tariffs target intellectual property rather than physical goods.
The Daily Beast reached out to the White House for comment but did not receive an immediate response.
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