Context:

Governor Gavin Newsom and Senator Adam Schiff, typically critics of President Trump, are proposing to collaborate with his administration on a $7.5 billion federal tax credit to revive the American film industry. This initiative aims to counteract Trump's proposed tariffs on foreign-made movies, which he believes are necessary to protect U.S. film jobs and enhance national security. Newsom, despite previously suing the administration over tariffs, is advocating for a federal partnership to bolster domestic film production. Schiff emphasizes the potential negative consequences of blanket tariffs and suggests a competitive federal film incentive instead. Meanwhile, Jon Voight, Trump's Hollywood ambassador, has presented a comprehensive plan that includes tax incentives and co-production treaties to boost domestic filmmaking efforts.

Dive Deeper:

• Governor Gavin Newsom and Senator Adam Schiff are seeking to work with President Trump's administration on a substantial federal tax credit intended to revitalize the U.S. film industry, which has seen production shift overseas.

• Trump's administration is contemplating a 100% tariff on foreign-made movies to safeguard national interests, a move Newsom previously challenged with a lawsuit, highlighting his initial opposition to the tariff regime.

• While Trump emphasizes protecting Hollywood jobs through tariffs, Newsom advocates for a federal partnership by showcasing the success of state incentives in job creation within the film industry.

• Schiff, although critical of Trump's tariff proposal, supports the idea of a federal tax credit, arguing that indiscriminate tariffs could have unintended adverse effects on the industry.

• Jon Voight, acting as Trump's Hollywood ambassador, along with advisor Steven Paul, has devised a plan that includes tax incentives, infrastructure subsidies, and treaty proposals to fortify domestic film production.

• The White House is considering various options to fulfill Trump's directive of making Hollywood a hub of cultural and economic activity again, though no final decisions have been made regarding the tariffs.

• The proposed federal tax credit, if implemented, would be the first at the national level, as existing incentives in over thirty states do not exceed a billion dollars each.