On September 29, US President Donald Trump announced a 100% tariff on all films made outside the United States. The policy aims to protect the American film industry. Trump claimed the move is needed because the US film business has been “stolen” by foreign countries. While this affects films from all over the world, Indian cinema could feel the impact the most.
Impact On Indian Films After Donald Trump Imposes 100% Tariff
The US is an important market for Indian films, especially for the Indian diaspora. In 2024, Indian movies earned around Rs 600–800 crore (Rs 6–8 billion) from US theatres, accounting for 5–7% of India’s total box office revenue. Experts warn that the 100% tariff could cut these earnings by 30–40%, resulting in a loss of Rs 180–320 crore (Rs 1.8–3.2 billion) every year.
Bollywood, Tollywood and other regional films often release in hundreds of theatres across the US. The tariff could make it too expensive for theatre owners to screen foreign films. This may reduce the number of screens and limit audience access. According to the Producers Guild of India, the Indian diaspora spends about $100 million every year on Indian-language films (including Telugu, Hindi, Tamil, Malayalam, Punjabi, and Bengali movies).
Why US Theatre Owners Won’t Support Trump’s Decision
Vivek Lath (an entertainment distributor) said in May, “US accounts for roughly 5-7% of box office revenues for Indian movies. Already stressed US theatre owners will not be happy with this, and if the rest of the world reciprocates, Hollywood will also lose a large share of its international revenues. Let’s see how this plays out.”
Shibasish Sarkar (president of the Producers Guild of India) told The Hindu, “Definitely there will be an impact on footfall if ticket prices go up, and it will also cut into the share of producers. Not only theatrical but any other streams of revenue or business coming from digital, satellite or from the US will be impacted.”
Ticket Prices Might Double In US If Donald Trump Imposes 100% Tariff
Trade expert Sreedhar Pillai explained to India Today: “What the distributors are saying is that, for example… If you have bought a film for Rs 5 crore to screen in the US, then you will have to end up giving Rs 10 crore. And suppose the average price of a ticket in the US is $10-15 right now, that will be increased to around $20-30, straight double.”
Ashish Kulkarni (an animation and VFX expert) added: “Under such a high tariff regime, all channels of movie showing and viewing will be impacted and become more costly. It will overall increase the cost of content consumption for the Indian diaspora.”
Recent Indian blockbusters like Baahubali 2 ($22 million), Kalki 2898AD, Pathaan, RRR, Pushpa 2, Jawan, and Animal ($15–19 million each) earned heavily from the US market. The new tariff creates uncertainty for co-productions and studios that depend on international box-office revenue. Trump said on Truth Social: “Our movie-making business has been stolen from the United States of America by other Countries, just like stealing candy from a baby.”
While US-India trade talks continue, this tariff shows a shift in American trade policy into the cultural and entertainment sectors. Legal experts are still unclear about how Trump will enforce the 100% tariff on foreign films.
