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. While US movies no longer rake in the Chinese audiences they once did, they still managed to gross $585 million in China last year. That’s no small sum for such a limited number of films, but only made up around 3.5 percent of the $17.71 billion Chinese box office.

The move comes in the wake of the latest round in the tariff wars initiated by U.S. President Donald Trump, where he announced a 90-day pause for several countries but increased tariffs on Chinese goods to 125%. China’s retaliatory tariffs are at 84%. “The wrong action of the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability towards American films,” the China Film Administration said on Thursday. “We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”

China said it would reduce imports of American movies, another bid to strike at U.S. services exports in an escalating trade war between the two countries. Earlier Thursday, China’s 84% retaliatory tariffs against all U.S. goods went into effect. The China Film Administration said Washington’s tariffs were abusive and would inevitably make domestic audiences less favorable toward American films. Recently Hollywood studios have been relying less on China and audiences have been turning toward domestic films such as “Ne Zha 2,” released in January, which became the world’s highest-grossing movie in any single market.