US President Donald Trump said on Monday that he will introduce a 100% tariff on all films made outside the country, a move that could not only disrupt Hollywood’s overseas business but also have implications for Indian cinema. The US a crucial market for Indian movies, accounting for 30-40% of overseas collections for big-budget films. Typically, Indian blockbusters are widely released across markets, tapping into the Indian diaspora who are big fans of Indian stars and eagerly await their releases.
According to distributors and exhibitors that FE spoke to, the US is the second-largest market after Telangana and Andhra Pradesh for Telugu films, accounting for 25-30% of their box office earnings. Big-ticket Bollywood films featuring A-listers such as Shahrukh Khan, Ranbir Kapoor, and Salman Khan are a top draw in the US, earning a fourth of their collections from this market, film trade experts said.
How much did recent Indian films earn in the US?
In calendar year 2024, Indian films across languages earned around 1,400-1,500 crore from the US box office, with Telugu and Hindi-language films being key contributors. In the last few years, films such as Baahubali 2 (200 crore), Kalki (160 crore), Pathaan (150 crore), RRR (132 crore), and Pushpa 2 (130 crore) have been key earners in the US. Bracketed figures are the US earnings of the above films. A 100% tariff could dent these revenues, disrupt distribution deals, and compel studios to rethink release strategies for the US market, experts said.
What did Donald Trump say?
In his post on Truth Social on Monday, Trump said that the US movie-making business had been stolen from the country by other nations, “just like stealing candy from a baby.”
It was unclear under which law Trump would bring in such tariffs or when they would take effect.
Experts said Trump had first spoken about tariffs on films in May but had given no details on how they would apply. Film trade analysts also noted that movies today are often produced, financed, and edited across multiple countries, impacting not just the American movie industry but also studios and producers collaborating with American filmmakers through co-productions.
Legal and trade experts said that films are a type of intellectual property and are usually part of global trade in services, a sector where the United States often records a surplus. This makes the legal basis for tariffs less clear.