The U.S. and China are now involved in a big trade war and it’s only getting worse. Reports came out yesterday, April 7 saying that China might stop or cut back on U.S. movies as a way to hit back at new
U.S. tariffs on Chinese goods. This isn’t official yet, but many news outlets say it’s being seriously considered. This article explains what’s going on, how it ties to the trade war, and how it could hurt Hollywood and the U.S. economy, with numbers to show the impact.
What’s the Trade War About?
The trade war between the U.S. and China is heating up. On April 8, 2025, President Donald Trump said he’d add a 50% tariff on Chinese goods. This came after China put a 34% tariff on U.S. goods, starting April 10, 2025, as a counteract against U.S. moves. These actions are making people worry about a worldwide economic downturn. Big banks like JP Morgan say there’s a 60% chance of a
recession-a time when the economy shrinks-by the end of 2025. China’s leaders call the U.S. actions “blackmail” and promise to keep fighting.
In this messy fight, China might ban U.S. movies as a way to push back. Some Chinese social media posts, possibly from the government, hint at plans to “cut or fully stop” U.S. films. This shows the
trade war isn’t just about goods-it’s hitting movies too.
Why U.S. Movies Matter to China
China’s movie market is one of the biggest in the world. In 2024, they earned $5.81 billion from ticket sales, and that’s expected to jump to $7.6 billion in 2025. Hollywood depends on China because U.S. movies bring in about 17% of that money, though that share is dropping. For example, Godzilla x Kong: The New Empire made $133.84 million in China in 2024, landing ninth on the top 10 list, even
though most big hits were Chinese films.
Big U.S. movies, called blockbusters, often make a lot of cash in China. Back in 2019, Avengers: Endgame pulled in $614 million there, which was 22% of its $2.8 billion worldwide total. Likewise, Godzilla x Kong got 23.4% of its $572.3 million global earnings from China. Hollywood needs this money because it helps pay for movies, especially if they don’t do great in the U.S. Studios usually keep about 25% of the ticket sales from China.
If China blocks U.S. movies, Hollywood could lose up to $500 million in ticket sales for big films, with studios losing about a quarter of that amount. This wouldn’t just hurt wallets-it could change how Hollywood makes movies.
How the Movie Ban Ties to the Trade War
China’s possible ban on U.S. films is a direct answer to U.S. tariffs. On April 2, 2025, Trump added a 10% tariff on all U.S. imports, which stirred up trouble. Goldman Sachs now says the U.S. economy might grow just 0.5% in 2025 and sees a 45% chance of a recession. China’s fighting back with its own tariffs, plus things like calling U.S. companies “unreliable” and limiting rare earth minerals-key stuff for tech.
Stopping U.S. movies is another way China can strike at the U.S. They’ve always been strict about movies, letting only 34 foreign films in each year since 2013 and controlling what’s shown. This ban could hurt U.S. money while helping China’s own movie industry grow. In 2024, eight of their top 10 films were made in China.
What It Means for the U.S. Economy
Hollywood would feel the biggest hit. In 2024, U.S. movies made about $888 million in China, with studios keeping around $222 million (25% of the total). For 2025, with China’s movie market hitting
$7.6 billion and U.S. films at 17%, Hollywood could make $1.292 billion in ticket sales, with studios getting $323 million. But since U.S. movies are most of the foreign ones shown, it’s more like $1.163 billion in sales, meaning $290.75 million for studios.
This loss is about 4% of Hollywood’s total global earnings (assuming $7.2 billion from an $18 billion worldwide box office, with studios taking 40%). That might not sound huge, but for big movies like Godzilla x Kong (23.4% from China) and Avengers: Endgame (22%), it’s a lot. Losing this cash could mean less profit and fewer movies being made.
Key Citations:
The Guardian Comic Basics
The Express Tribune China.org.cn
Wikipedia Daily mail Variety
