President Trump’s reciprocity tariff plan was verified from a massive implementation of nearly every country in the world this week to further increase imports from China, which would cut the volume of U.S. movie imports displayed in Chinese theaters.
In a statement released today, the CFA said it would “moderately reduce” the number of American films it brings to China, describing Trump’s sudden decision this week to further raise tariffs on Chinese imports to 125%, as “inevitably further reduce domestic audience favoring American films.” While the decision is far from a full ban rumored this week, it still marks a significant response to the emerging trade war between the United States and China, as well as 84% tariffs on U.S. goods announced this morning.
Although China has become an important market for American films in its international distribution, American-made films account for a smaller portion of China's box office, partly due to a significant reduction in circulation. According to previous trade agreements, China only releases up to 34 foreign-made films each year, providing international studios with 25% box office revenue.
Although American studios often compete for Tentpole releases to occupy these 34 slots, China's interest in American films has greatly reduced in recent years. Verge reports that in 2024, films made in the United States account for only 3.5% of China's annual box office, but are still about $585 million. Although the CFA has not confirmed the extent of the reduction, it has made the list smaller.
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