How Trump's Latest Threat Will Hit Indian Movies

'A 100% tariff could cut the Indian film industry's US revenues by 30% to 40%.'

Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Pixabay.com

From US exhibitors being less inclined to screen Indian films in theatres to a fall in US box office contribution to Indian films, rise in ticket prices, and possible increase in piracy of Indian films are among the major impacts that the industry would face if the US imposes a 100 per cent tariff on all films made outside its country.

While industry executives said it was too early to draw conclusions as the US is yet to clarify if these tariffs would include only theatrical films or films released on streaming platforms, too.

This follows US President Donald Trump's announcement on Monday on his social media platform Truth Social, stating that he will be imposing 'a 100 per cent tariff on any and all movies that are made outside of the US'.

In his post Trump said, 'Our movie making business has been stolen from the United States of America by other Countries, just like stealing "candy from a baby".

'California, with its weak and incompetent Governor, has been particularly hard hit!

'Therefore, in order to solve this long time, never ending problem, I will be imposing a 100 per cent Tariff on any and all movies that are made outside of the United States.'

A similar announcement had been made in May this year, however, this time, Trump specifically mentioned the impact on California.

"From a pure box office standpoint, a 100 per cent tariff could cut the Indian film industry's US revenues by 30 to 40 per cent, especially in diaspora-driven markets like Punjabi and Telugu cinema," said Suniel Wadhwa, co-founder and director, Karmic Films, a film production and distribution company.

"For Bollywood tentpoles, the hit could run into Rs 40 crore to 60 crore per film," adds Wadhwa.

"A tariff on foreign films will disrupt the global box office ecosystem and create cost pressures across streaming platforms, distributors, and exhibitors."

Movie trade analyst Girish Wankhede corroborated with Wadhwa and said the number of films going to the US would go down, impacting Hindi and Telugu-language films more.

At the same time, due to a rise in ticket prices for foreign-made films, footfalls for Indian films would be impacted.

In 2024, the US market contributed about 5 to 7 per cent or Rs 600 crore to Rs 800 crore of Indian cinema's total box office collections.

"In today's market, content flows both ways, Hollywood depends on overseas shoots and co-productions as much as global industries rely on US audiences," Wadhwa pointed out.

"Such protectionism risks triggering retaliatory measures, squeezing margins for studios, and reducing consumer choice. Instead of building barriers, the focus should be on strengthening fair trade practices that sustain growth for all stakeholders in the film business," Wadhwa added.

Meanwhile, Pradeep Dwivedi, group CEO, Eros Media World said the US is a lucrative overseas market for Indian films.

If revenue from the US drops, it could affect budget planning and profitability for Indian production houses.

Additionally, big-budget films counting on overseas revenue could be restructured or scaled back.

"Indian film industry hopes that India's long-term relationship with the US will help overcome this," said Dwivedi, "and that a mutually fair way forward can be concluded soon."