US President Donald Trump has announced plans to impose a "100% tariff" on all films made outside the United States and "substantial tariffs" on furniture not manufactured domestically. The statement, posted on his social media platform Trust Social, accused other countries of "stealing America's movie-making business like candy from a baby."
Trump's announcement has left the global film industry puzzled, with India reacting strongly given its significant stake in the North American market. For years, Hollywood has depended on international locations such as Canada, the UK, and Australia, where attractive tax breaks lure big productions. Partnerships with Asian and European studios are now routine, and much of the visual effects and post-production work is carried out in countries like India.
Filmmaker Kabir Khan expressed disbelief at the announcement. "I have no idea what he means when he says 'made outside of the United States' because every second Hollywood film is shot outside the USA, and the VFX is executed outside the USA. And a tariff on what? The ticket price? His statement is too broad to be understood properly. Firstly, let's see if he remembers this tomorrow when he wakes up," he said.
Indian cinema, meanwhile, holds a notable share of the US box office, driven largely by its diaspora audience. Telugu films, popularly known as Tollywood, dominate Indian releases in North America, followed closely by Hindi (Bollywood) films, and then Tamil, Malayalam, Punjabi, and other regional-language films.
National Award-winning filmmaker Pan Nalin also weighed in, telling NDTV that the American movie business is far from "stolen." "I do not agree with President Trump; the American movie business has not been stolen, and going by the trend in the first nine months of 2025, it has never been so robust since the pandemic. Just look at Warner Brothers - their second-quarter revenues increased modestly from last year to Rs 869 crore (USD 9.8 billion)," he said.
Nalin argued that the proposed tariffs would not have a dramatic impact on Indian films. "Only about 2% to 4% of India-produced films are released theatrically in the USA, usually those with big stars. These films are mainly screened in areas with a large Indian diaspora population. Instead of Rs 709 (USD 8) to Rs 887 (USD 10) tickets, audiences may end up paying Rs 1,419 (USD 16) to Rs 1,774 (USD 20). But beyond the Indian and South Asian diaspora, the business for Indian films in America is almost negligible."
Director Amit Rai of OMG 2 called the move "not practical" and warned of the dangers of such protectionist policies. "When a story is created, it demands its own space naturally. And if this move is being done because they want to make America great and bring back its old identity, then every country in the world has an equal right to think the same way. In that case, the whole world order will collapse," he said. Rai argued that cinema transcends borders, languages, and politics, and called for the tariff plan to be withdrawn.
Shibasish Sarkar, President of the Producers Guild of India, suggested the tariffs may be more about Hollywood than Bollywood. "I believe Mr Trump's statement, on the face of it, is more to address Hollywood productions, which are currently happening outside the USA. We will wait to see more material (circular/executive order). Currently, he is focused on bringing back Hollywood production to the US, which has shifted to Canada, Spain, South Korea, etc. His intention is more to safeguard local jobs and investment. He may not be concerned about foreign-language films releasing in the USA. However, from his comment on Truth Social, it's unclear. So, we would like to read the exact executive orders to comment on his intention," Sarkar told NDTV.
Film exhibitor and director of Aashirwad Theatres Pvt Ltd, Akshaye Rathi, urged caution, saying Trump's policy announcements often lack clarity at first. "Much like Mr Trump normally does, he announces a headline on his social media accounts and then there is a clarification that follows, which essentially defines what he tweets. Very recently, he spoke about pharmaceutical companies being imposed with heavy tariffs for branded medicines. Then they found that an overwhelming percentage of Indian pharmacy products exported to North America are actually not branded, they are generic, and therefore the impact on those is negligible," he said.
Rathi added that the "fine print" of Trump's new policy will determine its actual effect. "If we take it at face value, then a 100% tariff on films from other countries entering America - well, the number of Indian films that do extremely well in North America is fairly selective. It's a very significant market for Hindi and Telugu films in particular. When it comes to those one, two, or three big-ticket films that Indians in North America watch in large numbers, they will continue to watch them. Cinema halls in North America will find a pragmatic, sensible way to ensure consumption is not hampered in any way," he said.
In recent years, Indian blockbusters have earned significant revenue from US theatres. According to IMDb, Baahubali 2 grossed Rs 195 crore (USD 22 million) in the US, while Kalki 2898 AD, Pathaan, RRR, Pushpa 2, Jawan, and Animal all made between Rs 133 crore (USD 15 million) and Rs 168 crore (USD 19 million).
With the film industry waiting for clarity, Trump's proposed 100% tariff on foreign films has raised questions about how it will reshape release strategies, ticket pricing, and audience access. For now, experts suggest the impact on Indian films may be less dramatic than feared.