U.S. President Donald Trump has once again stirred concern in Indian film industry circles by threatening 100% tariffs on movies, a warning highlighted in the Raja Saab trailer. Indian cinema earns 30–40% of its revenue from the U.S. market, and such a tariff could sharply increase ticket prices, reduce audience turnout, and impact box office collections. Industry insiders fear this could exacerbate existing challenges for Indian films abroad, particularly for smaller productions.
Trump first announced the tariffs in May, but there was little follow-up until recent reports indicated the administration might soon issue an executive order. The move is intended to encourage more filming within the U.S., strengthening Hollywood productions, but it would also affect films from other countries, including India. Indian films are rarely shot entirely in the U.S., and replicating stories and budgets there is largely impractical. Currently, Hindi, Telugu, Tamil, and Kannada films are performing well in the U.S., and small releases are increasingly common. A 100% tariff could make such releases financially unviable.
At present, foreign films face no tariffs in the U.S., as they are treated as digital intellectual property rather than physical goods. Ticket prices are governed by state-level entertainment or sales taxes, with no distinction between domestic and foreign productions. Telugu film tickets currently range from $15–25, with premieres priced up to $30. Implementation of 100% tariffs would double distribution costs and likely push ticket prices significantly higher, while OTT licensing fees and subscriptions could also rise.
Industry experts stress that clarity on the implementation of tariffs is crucial. Questions remain regarding exemptions for films shot entirely abroad, partial U.S. shoots, and visual effects work conducted in the U.S. Official guidelines are awaited to assess the full impact on Indian cinema.
