In a bold extension of his "America First" policy, US President Donald Trump has proposed a 100% tariff on all films made outside the United States — a move that could severely disrupt Indian cinema’s booming business in North America.
The US has become one of the most lucrative overseas markets for Indian films, especially Bollywood and Telugu blockbusters.
Trump's announcement, posted on his Truth Social platform, accused foreign governments of luring filmmakers away from American soil with subsidies and tax breaks. “It’s not just business — it’s propaganda!” he wrote. “We want movies made in America again!”
He has instructed the US Department of Commerce and the US Trade Representative to begin formal proceedings, though the exact terms remain unclear.
There’s no confirmation yet on whether the tariff would apply only to fully foreign productions or also to US-based studios shooting abroad.
Similarly, it’s unknown if the tariff will affect just theatrical releases or also extend to streaming platforms like Netflix and Amazon Prime Video.
What has caused particular alarm is Trump’s insistence that the policy take “immediate effect,” leaving no room for previously signed deals to be exempt.
Distributors who’ve already acquired Indian films are facing massive losses, with no clarity on possible retroactive enforcement.
The impact on Indian cinema, especially Telugu-language films, could be severe.
Many major Telugu releases rely heavily on US box office returns, often premiering there a day early to create buzz.
A 100% import tariff would double distribution costs — a $1 million licensing deal would now require an additional $1 million in taxes — making the business model unviable.
The fallout is already being felt. Deals for upcoming films have been paused, and Indian production houses are anxious.
If streaming platforms are included in the tariff scope, even OTT releases may become financially untenable, prompting services like Netflix to reconsider their investment in Indian content for US audiences.
In 2023 alone, Indian films earned over $20 million in the US, with several playing on more than 1,000 screens.
From Pathaan and RRR to Kalki and Pushpa 2, Indian movies have found wide acceptance among both the diaspora and mainstream American audiences.
But Trump's tariff threat now puts that growth at risk. Indie films and regional cinema — already dependent on overseas revenue — could be hardest hit.
The community-driven model of fan shows and regional film festivals faces an uncertain future.
For distributors and producers, the fear is real. Without a clear exemption or rollback, projects like Kill and Salaar may struggle to secure viable distribution in the US.
Trump’s move is more than just an economic measure — it’s a direct challenge to the global reach and rising soft power of Indian cinema.
