Will Trump’s 100% Movie Tax Break Indian Cinema in the US?
Trump’s Tariff on Foreign Films: A Blow to Bollywood’s US Dreams
Indian cinema has long enjoyed a loyal audience in the United States. From Shah Rukh Khan’s Jawan to Prabhas’ Baahubali series, and Ranbir Kapoor’s Animal, these films have earned millions across North America. But now, a new policy from President Donald Trump could change everything.
He’s announced a 100% import tariff on movies made outside the US. This move could hit Bollywood hard, especially in cities like New York, San Francisco, Chicago, and Dallas, where Indian films have strong followings.
What Does a 100% Movie Tariff Mean?
A tariff is a tax on imported goods. In this case, it applies to foreign films. While it’s unclear how this will work for digital content, the impact could be felt in ticket prices. If producers pass the cost to viewers, Indian families in the US may end up paying more to watch their favorite stars.
According to the Producers Guild of India, the Indian diaspora spends nearly $100 million annually on watching Telugu, Hindi, Tamil, Malayalam, Punjabi, and Bengali films in American theaters.
Who Watches Indian Films in the US?
Indian-Americans make up about 1.6% of the US population, but they’re not the only ones watching. Pakistani-Americans enjoy Punjabi and Hindi films. Bangladeshi-Americans love Bengali cinema. Even Sri Lankan Tamils and local Americans are drawn to the vibrant storytelling and music of Indian movies.
This diverse audience has helped Indian films thrive in the US. But now, that success could be at risk.
How Much Revenue Is at Stake?
Entertainment distributor Vivek Lath estimates that the US contributes 5–7% of box office earnings for Indian films. That’s a significant chunk. If ticket prices rise, fewer people may go to theaters. And if other countries follow Trump’s lead, Hollywood could also lose international revenue.
Implementation Challenges: Is It Even Possible?
Modern filmmaking is global. Scripts may be written in Mumbai, edited in London, and streamed from servers in California. So, how do you tax a movie that’s made across borders?
Many experts believe the policy will be hard to enforce. But even the threat of higher costs could discourage producers from releasing films in the US.
What Happens to Ticket Prices?
If the tariff is applied, producers might raise ticket prices to cover the cost. That means a family outing to watch a Bollywood film could become more expensive. This could hurt smaller theaters that rely on Indian films to stay afloat.
Bollywood’s Response: Wait and Watch
So far, Indian producers haven’t made any official statements. Many are waiting to see how the policy is implemented. Some hope it will be reversed or softened. Others are exploring digital platforms like Netflix and Amazon Prime to reach US audiences without relying on theaters.
Timeline of Events
- July 2025: Trump hints at new tariffs on foreign entertainment.
- August 2025: Policy details emerge, sparking concern in India.
- September 2025: Official announcement of 100% import tax on non-US films.
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