The proposal from California Gov. Gavin Newsom (D) came after President Donald Trump called for massive tariffs on films made overseas.

Movie studios have increasingly moved production abroad in recent years as a means of cutting costs, industry analysts told ABC News, but it remains unclear how adding a tariff would succeed in boosting domestic production.

He attributed this to filmmaking incentives provided by other countries and described it as “a concerted effort by other Nations and, therefore, a National Security threat.” Hollywood immediately panned the idea and portrayed it as an existential threat to the U.