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By Kate Plummer
Senior US News Reporter
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China has announced it will reduce the number of U.S. films it imports, in reaction to President Donald Trump's tariffs on the country.
It comes despite Californian Governor Newsom's efforts to pursue a relationship with the country.
Why It Matters
A trade war between the US and China has been escalating. While Trump announced Wednesday he was pausing most of his tariffs on U.S. trade partners for 90 days, he sharply increased the tariff rate on Chinese imports to 125 percent.
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Trump had previously raised the tariff on Chinese goods to 104 percent on Wednesday and China responded by saying it would hike its tariffs to 84 percent.
What To Know
As reported by Variety, the China Film Administration confirmed it would be cutting back on importing U.S. films because of Trump's tariff policies.
Chinese authorities control film distribution in China completely, through two state-owned enterprises. In the last three decades, China has annually imported 10 Hollywood movies. They account for 5 percent of the overall box office receipts in China, according to Reuters.
"The wrong action of the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience's favorability toward American films," the China Film Administration said on Thursday. "We will follow the market rules, respect the audience's choice, and moderately reduce the number of American films imported."
It comes after an announcement on April 4 by Newsom that he was pursuing relationships with international partners and calling for California-made products to be excluded from retaliatory trade measures. These exports would include many American films produced in the state, home to Hollywood, Los Angeles.
What People Are Saying
In a statement, Newsom said: "California leads the nation as the #1 state for agriculture and manufacturing—and it's our workers, families, and farmers who stand to lose the most from this Trump tax hike and trade war. To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come, no matter the turbulence coming out of Washington. California is not Washington, D.C."
The China Ministry of Commerce warned Thursday, "If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end."
What Happens Next
The trade war between the countries looks set to continue. Meanwhile, it is not known what other tariffs, if any, Trump will impose in the next few weeks.
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