IMAX CEO dismisses China box office concerns, says tariff retaliation will target films with limited reach

Amid growing concerns about the U.S.-China trade war, IMAX CEO Rich Gelfond is urging that showbiz is relatively safe from the tensions between the two countries. On Wednesday’s earnings call, per Deadline, Gelfond addressed speculation surrounding the Middle Kingdom’s recent decision to scale back Hollywood imports, insisting the move will have a limited impact on their company’s business.

For those not in the loop, China, long a crucial overseas market for Tinseltown, has announced it will moderately reduce the number of foreign films, mostly US titles, it imports annually. Previously, the country allowed 34 international films each year, with Hollywood dominating theaters. The decision is seen as a retaliatory measure against the steep 145 percent tariffs the Trump administration has imposed on Chinese imports.

Despite the headlines, Gelfond remains unfazed. “The fundamentals of our business have never been stronger,” he said. “That fact has been obscured by recent noise around tariffs, China, and speculations about Hollywood’s future in the market.”

IMAX has had a major presence in China for over three decades, operating around 800 locations. According to Gelfond, the company’s longstanding relationships with Chinese studios and regulators give it a ground-level assessment of what’s actually happening. “We’ve spoken to every major Hollywood studio and our partners in China. We’re confident this reduction will mostly affect lower-budget films with limited box office potential—not the kinds of blockbusters that drive IMAX revenues,” he assured.

To support his point, Gelfond pointed out that Marvel’s Thunderbolts is still slated to open in China on April 30, and Disney’s Lilo & Stitch remake has also been dated. “Studios are still getting approvals,” he reiterated. “We’ve been told that any cuts, if they happen, will likely avoid the tentpoles we specialize in.”

He also dismissed concerns about Chinese audiences turning away from IMAX as an American brand. “We’ve built IMAX into something like a local prestige brand there." Plus, fun fact — it’s actually a Canadian company.

While the broader market remains jittery, with Wall Street bouncing on mixed messages from Washington, Gelfond believes the long-term outlook remains bright. “We’re not letting the noise distract us from the opportunity ahead,” he said.

As trade tensions simmer, all eyes are on whether China’s film restrictions grow stricter. But for now, IMAX seems confident that its blockbuster-friendly formula and deep roots in China will weather the storm.

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