In a dramatic policy move, U.S. President Donald Trump has announced a 100% tariff on all movies produced outside the United States — a first-of-its-kind measure that could severely impact the thriving business of Indian cinema in North America.
Posting late on Truth Social, Trump accused foreign countries of undermining America’s film industry, vowing to reclaim Hollywood’s global dominance.
“Our movie-making business has been stolen from the United States of America by other countries,” Trump said. “I will be imposing a 100% tariff on any and all movies made outside the United States.”
If implemented, this would mark the first U.S. tax on cross-border digital entertainment, targeting not just theatrical releases but also films distributed via streaming platforms such as Netflix, Amazon Prime Video, Disney+, and Hotstar.
Major Blow to Indian Film Industry
The U.S. is one of the most lucrative overseas markets for Indian films, contributing an estimated $100–150 million annually across Hindi, Tamil, Telugu, and Malayalam releases. The proposed tariff could double ticket prices overnight — turning a $20 ticket into $40 — and drastically reduce audience turnout, especially among diaspora viewers, the primary market for Indian cinema abroad.
“It’s a bloodbath waiting to happen,” said a Mumbai-based film distributor. “Margins are already tight. Doubling ticket prices will make most Indian releases unviable in the U.S.”
Blockbusters at Risk
Blockbusters such as Baahubali 2, Kalki 2898 AD, Pathaan, and Jawan have earned tens of millions from U.S. theatres. Under the new tariff, such successes could become rare, with distributors fearing a collapse in overseas revenues.
The streaming sector is also bracing for disruption. Since the tariff extends to digitally delivered content, platforms could face higher licensing costs, leading to fewer acquisitions of Indian titles and reduced exposure for Indian creators.
Global Repercussions Possible
Analysts warn that Trump’s decision could provoke retaliatory tariffs from other countries, potentially affecting both Hollywood exports and broader trade relations.
If enforced, the policy could deliver a major setback to Indian cinema’s global ambitions, forcing producers and distributors to rethink international release strategies and adjust to a sharply reduced overseas footprint.