China set to ban Hollywood movies as a response to Trump tariffs

By MIRIAM KUEPPER and JESSICA CLARK and PATRICK TOOHER

Published: | Updated:

Advertisement

China plans to ban Hollywood movies after saying it will never accept the 'blackmail nature' of the United States following President Donald Trump's escalated tariff threats against Beijing. It will put more tariffs on US agricultural products like soybeans, block all US poultry from entering China and ban the import of US movies into the country, a Chinese journalist linked to the Communist party told BBC's Radio 4 programme.

China plans to ban Hollywood movies after saying it will never accept the 'blackmail nature' of the United States following President Donald Trump's escalated tariff threats against Beijing. It will put more tariffs on US agricultural products like soybeans, block all US poultry from entering China and ban the import of US movies into the country, a Chinese journalist linked to the Communist party told BBC's Radio 4 programme.

US films grossed $585million in China last year, which is about 3.5 per cent of China's $17.71billion box office and among the largest share of foreign films. A ban on American movies would cause upcoming releases like Jurassic World: Rebirth, the Accountant 2 and the Mission Impossible sequel lose out on hundreds of millions of dollars in the Chinese market. US President Trump said yesterday that he will impose an additional 50 per cent tariff on China if Beijing does not withdraw its retaliatory tariffs on the US, which China swiftly labelled 'blackmail' and drew up plans to ban certain US imports in response. The US threats were 'a mistake on top of a mistake, once again exposing the American side's blackmailing nature,' the Chinese commerce ministry said in a statement this morning, urging the US to properly resolve differences with China through dialog with mutual respect and on an equal footing.

US films grossed $585million in China last year, which is about 3.5 per cent of China's $17.71billion box office and among the largest share of foreign films. A ban on American movies would cause upcoming releases like Jurassic World: Rebirth, the Accountant 2 and the Mission Impossible sequel lose out on hundreds of millions of dollars in the Chinese market. US President Trump said yesterday that he will impose an additional 50 per cent tariff on China if Beijing does not withdraw its retaliatory tariffs on the US, which China swiftly labelled 'blackmail' and drew up plans to ban certain US imports in response. The US threats were 'a mistake on top of a mistake, once again exposing the American side's blackmailing nature,' the Chinese commerce ministry said in a statement this morning, urging the US to properly resolve differences with China through dialog with mutual respect and on an equal footing.

'Tariff wars have no winners, and protectionism has no way out. Chinese people don't make trouble, but are not afraid of it. Pressure, threats and blackmail are not the right way to deal with China,' foreign ministry spokesman Lin Jian said. If Trump sticks to his plan for an additional 50 per cent tariff on China unless it withdraws its retaliatory levies on the US, total new US duties on Chinese goods this year could rise to 104 per cent by Wednesday. With global supply chains in jeopardy, Beijing is under pressure to respond ahead of a meeting between President Xi Jinping and Spain's prime minister and a tour of Southeast Asia. But with Trump's previous tariff increases already squeezing Chinese exporters' margins to the point of suffocation, further hikes would only serve to underscore Washington's appetite for brinkmanship and its desire to cut China out of the world's biggest consumer market as a matter of principle, analysts say.

'Tariff wars have no winners, and protectionism has no way out. Chinese people don't make trouble, but are not afraid of it. Pressure, threats and blackmail are not the right way to deal with China,' foreign ministry spokesman Lin Jian said. If Trump sticks to his plan for an additional 50 per cent tariff on China unless it withdraws its retaliatory levies on the US, total new US duties on Chinese goods this year could rise to 104 per cent by Wednesday. With global supply chains in jeopardy, Beijing is under pressure to respond ahead of a meeting between President Xi Jinping and Spain's prime minister and a tour of Southeast Asia. But with Trump's previous tariff increases already squeezing Chinese exporters' margins to the point of suffocation, further hikes would only serve to underscore Washington's appetite for brinkmanship and its desire to cut China out of the world's biggest consumer market as a matter of principle, analysts say.

'If the US insists on having its way, China will fight to the end,' China's commerce ministry said in its statement. Trump said he would impose the additional 50 per cent duty on US imports from China on Wednesday if Beijing did not withdraw the 34 per cent tariffs it had imposed on US products last week. The Chinese levies had come in response to 34 per cent 'reciprocal' duties announced by Trump, on top of tariffs of 20 per cent imposed earlier this year, lifting to 76 per cent the average US tariff on Chinese goods. 'If the tariffs keep going up and up, it becomes a battle of wills and principles rather than economics,' said Xu Tianchen, senior economist for China at the Economist Intelligence Unit. 'Since China already faces a tariff rate in excess of 60 per cent, it doesn't matter if it goes up by 50 per cent or 500 per cent,' he added. China has stepped up efforts to shield its economy from global market turmoil following Trump's announcement.

'If the US insists on having its way, China will fight to the end,' China's commerce ministry said in its statement. Trump said he would impose the additional 50 per cent duty on US imports from China on Wednesday if Beijing did not withdraw the 34 per cent tariffs it had imposed on US products last week. The Chinese levies had come in response to 34 per cent 'reciprocal' duties announced by Trump, on top of tariffs of 20 per cent imposed earlier this year, lifting to 76 per cent the average US tariff on Chinese goods. 'If the tariffs keep going up and up, it becomes a battle of wills and principles rather than economics,' said Xu Tianchen, senior economist for China at the Economist Intelligence Unit. 'Since China already faces a tariff rate in excess of 60 per cent, it doesn't matter if it goes up by 50 per cent or 500 per cent,' he added. China has stepped up efforts to shield its economy from global market turmoil following Trump's announcement.

Several state holding companies have committed to increase share investment, a slew of listed companies unveiled buybacks, and the central bank pledged liquidity support for fund Central Huijin after it intervened to support sinking stocks. But there is no escaping the fact that Trump's affinity for tariffs risks derailing China's largely export-led economic recovery that followed the end of the COVID-19 pandemic, unless exporters can pivot quickly to other markets. Trump's tariffs will be felt particularly keenly as they target the two main strategies Chinese exporters have used to blunt the impact of the trade war: shifting some production abroad and boosting sales to non-US markets. Ordinary people have also started to voice opposition, accusing the tariff-touting president of wanting to suppress the United States' rival. 'The tariffs on China were set too high, too high, and ordinary Chinese people just can't accept that,' said Qi Xiushun, a 58-year-old resident of the commercial hub of Shanghai. '(The tariffs) are suppressing China's economic development - these tariffs were mainly pushed by Trump, right?'

Several state holding companies have committed to increase share investment, a slew of listed companies unveiled buybacks, and the central bank pledged liquidity support for fund Central Huijin after it intervened to support sinking stocks. But there is no escaping the fact that Trump's affinity for tariffs risks derailing China's largely export-led economic recovery that followed the end of the COVID-19 pandemic, unless exporters can pivot quickly to other markets. Trump's tariffs will be felt particularly keenly as they target the two main strategies Chinese exporters have used to blunt the impact of the trade war: shifting some production abroad and boosting sales to non-US markets. Ordinary people have also started to voice opposition, accusing the tariff-touting president of wanting to suppress the United States' rival. 'The tariffs on China were set too high, too high, and ordinary Chinese people just can't accept that,' said Qi Xiushun, a 58-year-old resident of the commercial hub of Shanghai. '(The tariffs) are suppressing China's economic development - these tariffs were mainly pushed by Trump, right?'

Dan Wang, a China expert at Eurasia Group, said Trump had effectively already wiped out Chinese exporters' profits once US import duties passed the 35 per cent mark. 'After that, China shouldn't export to the US at all. It could be 1,000 per cent, but since there is no trade, there is no harm. Europe is and will be the most profitable market for China now.' Xi is expected to meet Spain's Prime Minister Pedro Sanchez on Friday, with the agenda likely to cover finding a resolution to trade tension with Brussels over China's electric vehicle exports, as well as Trump's broader tariff onslaught. The Chinese leader will then visit Malaysia , Vietnam and Cambodia, three economies that gained from relocation by Chinese manufacturers to avoid U.S. sanctions during Trump's first term, but which now face steep levies of their own. 'I think (Trump's) targeting us, targeting China,' said Wu Xing, a 34-year-old sales person, also from Shanghai, adding that she expected the tariffs would have a big impact on her. 'As for the United States, I think it's targeting the whole world.'

Dan Wang, a China expert at Eurasia Group, said Trump had effectively already wiped out Chinese exporters' profits once US import duties passed the 35 per cent mark. 'After that, China shouldn't export to the US at all. It could be 1,000 per cent, but since there is no trade, there is no harm. Europe is and will be the most profitable market for China now.' Xi is expected to meet Spain's Prime Minister Pedro Sanchez on Friday, with the agenda likely to cover finding a resolution to trade tension with Brussels over China's electric vehicle exports, as well as Trump's broader tariff onslaught. The Chinese leader will then visit Malaysia , Vietnam and Cambodia, three economies that gained from relocation by Chinese manufacturers to avoid U.S. sanctions during Trump's first term, but which now face steep levies of their own. 'I think (Trump's) targeting us, targeting China,' said Wu Xing, a 34-year-old sales person, also from Shanghai, adding that she expected the tariffs would have a big impact on her. 'As for the United States, I think it's targeting the whole world.'

Meanwhile, stocks plunged for a third day on Monday, yet the US President took aim at Beijing, which said it would impose its own 34 per cent levy on imports of American goods as a retaliatory measure to last week's tolls. Trump's threat to slap China with tariffs of more than 100 per cent despite mounting pressure from allies to halt his trade war came as trillions more were wiped off markets. The tit-for-tat could take the US tariff rate on China to 104 per cent. That would be made up of the 34 per cent tariffs announced last week, which are set to kick in tomorrow and which came on top of 20 per cent levies already in place. Mr Trump's threat of an additional 50 per cent would essentially double the price of any Chinese goods imported to the US. But it was likely to bring a sharp reaction from tech firms such as Apple who have been cosying up to the White House but rely on China for their products.

Meanwhile, stocks plunged for a third day on Monday, yet the US President took aim at Beijing, which said it would impose its own 34 per cent levy on imports of American goods as a retaliatory measure to last week's tolls. Trump's threat to slap China with tariffs of more than 100 per cent despite mounting pressure from allies to halt his trade war came as trillions more were wiped off markets. The tit-for-tat could take the US tariff rate on China to 104 per cent. That would be made up of the 34 per cent tariffs announced last week, which are set to kick in tomorrow and which came on top of 20 per cent levies already in place. Mr Trump's threat of an additional 50 per cent would essentially double the price of any Chinese goods imported to the US. But it was likely to bring a sharp reaction from tech firms such as Apple who have been cosying up to the White House but rely on China for their products.

Trump stepped up his action despite calls from billionaire investor Bill Ackman ¿ a major backer of the President ¿ and JP Morgan boss Jamie Dimon to resolve the crisis amid a market meltdown. Ackman warned the US was heading towards an 'economic nuclear winter' as the US tariffs increased the chances of a global recession, while Dimon ¿ often dubbed 'the world's most powerful banker' ¿ warned there may soon be no way back. The developments came as: London's FTSE 100 index of blue-chip stocks fell 4.38 per cent, continuing days of sell-offs and losses; Volatile Wall Street stocks staged a $4trillion rally, on reports that Mr Trump was mulling a 90-day reprieve on tariffs, before falling back when the White House dismissed the speculation as 'fake news'.

Trump stepped up his action despite calls from billionaire investor Bill Ackman – a major backer of the President – and JP Morgan boss Jamie Dimon to resolve the crisis amid a market meltdown. Ackman warned the US was heading towards an 'economic nuclear winter' as the US tariffs increased the chances of a global recession, while Dimon – often dubbed 'the world's most powerful banker' – warned there may soon be no way back. The developments came as: London's FTSE 100 index of blue-chip stocks fell 4.38 per cent, continuing days of sell-offs and losses; Volatile Wall Street stocks staged a $4trillion rally, on reports that Mr Trump was mulling a 90-day reprieve on tariffs, before falling back when the White House dismissed the speculation as 'fake news'.

The US was in 'bear market' territory ¿ a term investors use when stocks have fallen 20 per cent from a recent high; The Cboe Volatility Index ¿ dubbed Wall Street's 'fear gauge' ¿ hit an eight-month high of 60.13; European stock markets recorded a third day of losses with Germany's Dax falling 4.26 per cent and France's CAC 40 down 4.78 per cent; Asian markets plunged overnight on Sunday with Japan's Nikkei 225 losing 7.83 per cent and Hong Kong's Hang Seng tumbliing 13.22 per cent, its biggest single-day fall since 1997; Oil prices hit a four-year low of $64.25 per barrel on fears a global recession would dampen demand; Gold, usually a safe haven in uncertain economic times, fell about 2 per cent to $2,985 an ounce as investors retreated into cash.

The US was in 'bear market' territory – a term investors use when stocks have fallen 20 per cent from a recent high; The Cboe Volatility Index – dubbed Wall Street's 'fear gauge' – hit an eight-month high of 60.13; European stock markets recorded a third day of losses with Germany's Dax falling 4.26 per cent and France's CAC 40 down 4.78 per cent; Asian markets plunged overnight on Sunday with Japan's Nikkei 225 losing 7.83 per cent and Hong Kong's Hang Seng tumbliing 13.22 per cent, its biggest single-day fall since 1997; Oil prices hit a four-year low of $64.25 per barrel on fears a global recession would dampen demand; Gold, usually a safe haven in uncertain economic times, fell about 2 per cent to $2,985 an ounce as investors retreated into cash.

Despite the bloodbath in global financial markets and damning criticism from both economists and allies, Trump remained defiant. 'Be strong, courageous, and patient, and greatness will be the result,' he wrote on Truth Social, his social media platform. He later threatened Beijing, saying: 'If China does not withdraw its 34 per cent increase above their already long-term trading abuses by April 8, the United States will impose additional tariffs on China of 50 per cent, effective April 9. 'Additionally, all talks with China concerning their requested meetings with us will be terminated.' Trump described tariffs as 'a beautiful thing to behold' and added: 'I don't want anything to go down but sometimes you have to take medicine to fix something'.

Despite the bloodbath in global financial markets and damning criticism from both economists and allies, Trump remained defiant. 'Be strong, courageous, and patient, and greatness will be the result,' he wrote on Truth Social, his social media platform. He later threatened Beijing, saying: 'If China does not withdraw its 34 per cent increase above their already long-term trading abuses by April 8, the United States will impose additional tariffs on China of 50 per cent, effective April 9. 'Additionally, all talks with China concerning their requested meetings with us will be terminated.' Trump described tariffs as 'a beautiful thing to behold' and added: 'I don't want anything to go down but sometimes you have to take medicine to fix something'.

In the Oval Office alongside Israeli prime minister Benjamin Netanyahu last night, Trump again rejected a pause on tariffs. 'We're not looking at that,' he said and added the US 'has been ripped off by many countries over the years'. Analysts at independent advisers Pantheon Macro said the President's comments on China had 'poured gas on the fire' and upped the risk of a recession. Ackman, boss of US hedge fund Pershing Square and a Democrat who flipped to support Trump, said: 'The President is losing the confidence of business leaders around the globe ¿ this is not what we voted for. 'The President has an opportunity to call a time-out and have the time to execute on fixing an unfair tariff system. Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down.'

In the Oval Office alongside Israeli prime minister Benjamin Netanyahu last night, Trump again rejected a pause on tariffs. 'We're not looking at that,' he said and added the US 'has been ripped off by many countries over the years'. Analysts at independent advisers Pantheon Macro said the President's comments on China had 'poured gas on the fire' and upped the risk of a recession. Ackman, boss of US hedge fund Pershing Square and a Democrat who flipped to support Trump, said: 'The President is losing the confidence of business leaders around the globe – this is not what we voted for. 'The President has an opportunity to call a time-out and have the time to execute on fixing an unfair tariff system. Alternatively, we are heading for a self-induced, economic nuclear winter, and we should start hunkering down.'

Tesla boss Elon Musk , the world's richest man and head of the US department of government efficiency, has also stated all is not aligned in the Trump administration's economic policy. Following his call on Sunday for a 'free-trade zone between Europe and North America', Musk yesterday shared a video on his X platform of former Ronald Reagan and Margaret Thatcher adviser Milton Friedman extolling the benefits of free markets and complex supply chains. Musk's SpaceX is one of those firms said to be pushing for exemptions on tariffs from China. Dimon told his shareholders: 'The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse.' JPMorgan's economists raised the risk of a US and global recession this year to 60 per cent from 40 per cent after Trump last week unveiled the steepest trade barriers in more than 100 years.

Tesla boss Elon Musk , the world's richest man and head of the US department of government efficiency, has also stated all is not aligned in the Trump administration's economic policy. Following his call on Sunday for a 'free-trade zone between Europe and North America', Musk yesterday shared a video on his X platform of former Ronald Reagan and Margaret Thatcher adviser Milton Friedman extolling the benefits of free markets and complex supply chains. Musk's SpaceX is one of those firms said to be pushing for exemptions on tariffs from China. Dimon told his shareholders: 'The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse.' JPMorgan's economists raised the risk of a US and global recession this year to 60 per cent from 40 per cent after Trump last week unveiled the steepest trade barriers in more than 100 years.

Want more stories like this from the Daily Mail? Hit the follow button above for more of the news you need.

Want more stories like this from the Daily Mail? Hit the follow button above for more of the news you need.

BeijingChina

Sorry we are not currently accepting comments on this article.