US President Donald Trump, in a post on Truth Social, claimed that the American movie industry had been “stolen” by foreign countries, likening the situation to “stealing candy from a baby.”
He criticised
California, saying the state had been “particularly hard hit” under a “weak and incompetent Governor.”
To tackle what he described as a “long time, never-ending problem,” Trump announced a 100% tariff on all films produced outside the United States.
While his focus was on Hollywood, Indian cinema could also feel the impact, given that the announcement targets all foreign films. He concluded with his signature slogan: “MAKE AMERICA GREAT AGAIN!”
The US is a crucial market for Indian cinema. Industry sources estimate that it accounts for 30–40% of overseas collections, and for Telugu films, it is the second-largest international market after Telangana. Big-ticket Telugu releases can derive upto 25% of their box office earnings from the US. These films are typically released in 700–800 locations nationwide.
In 2024, Indian films collectively grossed approximately $160–170 million at the US box office.
Top earners include Baahubali 2 ($22 million), Kalki ($18.5 million), Pathaan ($17.49 million), RRR ($15.34 million), and Pushpa 2 ($15 million). A 100% tariff could significantly dent these revenues, disrupt distribution deals, and compel studios to rethink release strategies for the US market.
With US collections forming a substantial portion of global earnings, the new tariff threatens not only revenue streams but also investor confidence in cross-border releases, potentially reshaping the business landscape for Indian cinema abroad.