The Bipartisan Battle to Save Hollywood: Tariffs, Incentives, and a Surprising Alliance

California Governor Gavin Newsom made waves today with a post on X (formerly Twitter), signaling his support for a federal-state partnership to rejuvenate America’s struggling film industry. In the post, Newsom declared, “California built the film industry — and we’re ready to bring even more jobs home,” calling for federal collaboration to “Make America Film Again.” The post was directed at the President (@POTUS), signaling a potential bipartisan effort to reverse the exodus of film production from American soil.

This comes just days after actor Ben Affleck publicly lamented the economic challenges of filming in California. In a televised interview, Affleck pointed out how Hollywood studios are increasingly taking their productions out of the state — and even out of the country — due to skyrocketing costs and more favorable incentives abroad.

Ironically, the loudest political voice calling for action to stop this trend has been one of Hollywood’s most reviled figures: President Donald Trump.

Despite being vilified by many in the entertainment industry, President Trump has called Hollywood a vital part of America's cultural infrastructure and a national security interest. As part of his effort to protect and re-anchor the industry in the U.S., Trump has proposed 100% tariffs on films made abroad and then sold in the American market. His strategy? Make it cost-prohibitive to outsource movie production — the "stick" — while encouraging domestic production through targeted state and federal subsidies — the "carrot."

Trump’s plan essentially forces Hollywood studios to do the math: risk losing profits to steep tariffs, or take advantage of U.S.-based tax breaks and incentives offered by states like California, Georgia, and others. It’s an economic pressure campaign aimed not at punishing the industry, but at bringing its jobs and cultural influence back under the American flag.

As expected, the reaction from Trump’s political opponents was swift and harsh. Democrats, liberals, and progressive commentators — many suffering from an unrelenting case of Trump Derangement Syndrome — reflexively denounced the policy as “authoritarian,” “nationalist,” or “protectionist.” Yet when stripped of partisan branding, the proposal closely mirrors traditional Democratic approaches to domestic economic revival.

And now, with Governor Newsom signaling his willingness to work with the federal government to protect and rebuild Hollywood, the political lines are beginning to blur.

Whether this alliance materializes into real policy is still unclear. But one thing is becoming increasingly evident: for all its cultural excess and political partisanship, Hollywood is still seen — by both red and blue America — as too important to lose.