Beijing, China (AFP)—China’s Film Administration said on Thursday it would “moderately reduce” the number of US films it imported into the country, as a standoff between the world’s two largest economies escalates.

US President Donald Trump on Wednesday raised tariffs on Chinese goods to 125 per cent, while China has imposed retaliatory levies of 84 percent.

And on Thursday, the effects of the trade war spread to China’s huge and lucrative film market, the world’s second largest.

“The wrong action of the US government’s indiscriminate tariffs on China is bound to further reduce the favourable impression of domestic audiences on American films,” a statement from the film administration said.

“We will follow the law of the market, respect the choice of the audience, and moderately reduce the number of US films imported.”

Beijing already limits the number of foreign films shown in cinemas through a system of quotas.

However, the sheer size of the Chinese market means that losing more of even that limited access would be a blow to US studios.

Showcase Hollywood blockbusters often fare well at the Chinese box office.

Warner Bros and Legendary’s “A Minecraft Movie” took the top spot last weekend, with ticket sales of around $14.5 million, according to the Hollywood Reporter.