Trump Hits the Indian Movie Industry with 100% Tariffs: Donald J. Trump has dropped another bomb. And, this time, he is behind the Indian movie industry & other overseas film industries because he has recently announced a 100% tariff on Indian movies and other overseas films released in the USA. What does it mean for Indian cinema? And what impact it will have. That’s what we will answer in this write-up, where we will discuss the most burning question: how will this tariff impact the Indian movie industry and global film trade?
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Story Behind Trump’s 100% Tariff
President Trump has recently made a shocking announcement on his Truth Social platform, where he stressed the issue that foreign films are “stealing” America’s movie business. And that’s why he has announced a new tariff scheme for foreign films in America. This policy is an extension of his aggressive tariff strategy. Previously, all the Indian goods were penalized at nearly 50% due to geopolitical disagreements, and now the 100% tariff on the films has come as another shocker.
The US market has always been a key attraction for Indian movies, but the tariff effect will be a huge setback. Shah Rukh Khan’s Jawan, Prabhas’s Baahubali series, and Ranbir Kapoor’s Animal have earned between $15 and $22 million each in the American market. The Indian diaspora spends around $100 million annually on Telugu, Hindi, Tamil, Punjabi, and other language films. And thanks to the tariff, the cost is set to skyrocket.
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Rising Ticket Prices and Audience Impact
The increased tariff will likely increase the film’s prices almost double because producers and distributors might pass the tax burden to audiences. Currently, on average, an Indian movie ticket in the US costs around $15-20. And many experts believe that Trump’s new tariffs will increase the ticket price to $30–40 per ticket.
This increase could be very dangerous, and it cuts into the much-needed strong audience base of Indian, Pakistani, Bangladeshi, and Sri Lankan communities in America. The impact of Trump’s 100% tariff on Indian movies can be huge, and it may also discourage casual American viewers who have contributed significantly to the increased box office collections of films like RRR and Pathaan.
What Industry Experts Say
- Vivek Lath, who is a distributor, has highlighted that the US is a big market and it contributes nearly 5–7% of Indian films’ box office revenue. And, this new tariff might impact the Hollywood industry too, if other countries retaliate.
- Shibasish Sarkar, who is the Producers Guild of India president, has explained that higher costs would reduce footfalls, and this is going to hurt both producers and exhibitors.
- Ashish Kulkarni, on the other hand, has said that streaming and satellite rights will also face the brunt of tariffs.
Impact on Bollywood, Tollywood, and Global Collaboration
It has been a trend that Telugu films dominate Indian releases in the US, followed by Bollywood and Tamil cinema. And due to Trump’s new policy, Tollywood and Bollywood films may see a drastic fall in overseas earnings. Also, one thing that is important to note is that Hollywood itself heavily depends on international partnerships, and this increased tariff could backfire.
Conclusion
The 100% tariff on Indian films by Donald Trump is going to have a significant impact on Indian films. This increased tariff will potentially double the Indian films’ ticket price in America and ultimately decrease the footfall. With that being said, if other countries try to hit back, then Hollywood films are likely to suffer too. We don’t know what will happen next, but one thing is clear: this new tariff by Trump is likely to create a lot of discussion in the film industry.
Note
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