China says it will cut the number of US films that are imported into the country in retaliation against the latest wave of tariff increases imposed by the Trump administration. A statement issued by the Chinese Film Administration (CFA) on Thursday, which we’ve translated using Google, said that the decision to increase tariffs against China to 125 percent was “the wrong move,” and will “further reduce the domestic audience’s favorability” towards American-made movies.

“We will follow market rules, respect the audience’s choice, and moderately reduce the number of American films imported,” The CFA said. “China is the world’s second-largest film market. We have always adhered to a high level of opening up to the outside world and will introduce more excellent films from the world to meet market demand.”

Predictions about a potential ban on American film imports into China have been circulating in recent days since Trump ramped up his trade war against the country. Under previous trade agreements, China agreed to release 34 foreign films per year and provide overseas studios with a 25 percent share of ticket sales. It’s unclear how significantly these allowances may be reduced going forward.

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