In a bold move under his “America First” policy, former U.S. President Donald Trump has proposed a 100% tariff on all foreign films made outside the United States. The announcement, made via Trump’s Truth Social platform, raises serious concerns about its potential impact on Indian cinema — particularly Bollywood and Telugu-language films, which enjoy strong popularity in North America.
The U.S. has become a crucial overseas market for Indian movies. Telugu blockbusters, in particular, often rely heavily on U.S. box office revenues, with some films premiering there a day early to generate buzz. A 100% tariff could drastically increase distribution costs, making it financially challenging to release these films in the U.S. A typical $1 million licensing deal would now require an additional $1 million in taxes, potentially rendering the business model unsustainable.
Trump’s statement accused foreign governments of benefiting from American subsidies and tax breaks while exporting films to the U.S. market. “It’s not just business — it’s propaganda,” he wrote. “We want movies made in America again!”
He has directed the U.S. Department of Commerce and the U.S. Trade Representative to begin formal proceedings, although implementation details remain unclear. It is still uncertain whether the proposed tariff would apply only to fully foreign-made productions or include U.S.-based shoots by international filmmakers.
There’s also ambiguity around whether the tariff will affect just theatrical releases or extend to streaming platforms like Netflix and Amazon Prime Video. Trump’s insistence on the policy taking “immediate effect” has sparked concern across the industry, especially since previously signed deals may not be exempt.
The ripple effect is already visible. Planned releases have been paused, and Indian producers are reconsidering upcoming projects aimed at U.S. audiences. Streaming services may also find it unfeasible to continue acquiring Indian content under the new cost structure, potentially limiting diverse storytelling options for U.S. viewers.
In 2023 alone, Indian films earned over $20 million in the U.S., with several surpassing 1,000 screens. Blockbusters like Pathaan, RRR, Pushpa 2, and Kalki have proven that Indian cinema can resonate with American and global audiences. This new tariff proposal threatens to upend that success.
Moreover, niche and regional films — already dependent on overseas revenues — may struggle to find international buyers. Film festivals and community screenings in the U.S., which often rely on modestly budgeted indie films, also face an uncertain future.
For producers and distributors, the concern is real. Without clear rollback provisions or strategic exemptions, major projects may be forced to bypass the U.S. market altogether. Trump’s move represents not only a financial roadblock but also a challenge to Indian cinema’s growing global influence and its vital soft power appeal.
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