{"id":16482,"date":"2025-09-30T06:01:45","date_gmt":"2025-09-30T06:01:45","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/30\/trumps-100-film-tariff-is-it-even-possible-and-what-would-it-mean-for-indian-cinema-explainers-news\/"},"modified":"2025-09-30T06:01:45","modified_gmt":"2025-09-30T06:01:45","slug":"trumps-100-film-tariff-is-it-even-possible-and-what-would-it-mean-for-indian-cinema-explainers-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/30\/trumps-100-film-tariff-is-it-even-possible-and-what-would-it-mean-for-indian-cinema-explainers-news\/","title":{"rendered":"Trump\u2019s 100% Film Tariff: Is It Even Possible, And What Would It Mean For Indian Cinema? | Explainers News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9604967\">\n<p><span class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">Last Updated:<\/span><time class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">September 30, 2025, 10:54 IST<\/time><\/p>\n<h2 id=\"asubttl-9604967\" class=\"jsx-c9f81425ec968c48 jsx-1678181597 asubttl-schema\">Indian cinema could take a direct hit from Trump\u2019s tariff threat, but Hollywood too may not escape the fallout<\/h2>\n<div class=\"jsx-cc1b15cf85effb8b artsharwrp\"><a href=\"https:\/\/news18.co\/gnps-en-btn\" target=\"_blank\" class=\"jsx-91f4da8d48c13a79 gglebtn bgprpl\"\/><\/p>\n<div id=\"artshare\" class=\"jsx-cc1b15cf85effb8b artshare\">\n<div class=\"jsx-cc1b15cf85effb8b stickdiv\">\n<div class=\"jsx-cc1b15cf85effb8b deskwrapstkdiv\">\n<div class=\"jsx-cc1b15cf85effb8b fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" title=\"font\" class=\"jsx-cc1b15cf85effb8b lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-c9f81425ec968c48 jsx-1678181597 amimg\"><img decoding=\"async\" alt=\"US President Donald Trump earlier in May indicated that he would impose levies of filmmaking and introduce tariffs. (IMAGE: REUTERS) \" title=\"US President Donald Trump earlier in May indicated that he would impose levies of filmmaking and introduce tariffs. (IMAGE: REUTERS) \" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-c9f81425ec968c48 jsx-1678181597\"\/><\/p>\n<p>US President Donald Trump earlier in May indicated that he would impose levies of filmmaking and introduce tariffs. (IMAGE: REUTERS) <\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\">On 29 September, US President Donald Trump took to his social media platform Truth Social and declared that he would impose a <a href=\"https:\/\/www.news18.com\/world\/donald-trump-announces-100-tariffs-on-movies-made-outside-us-our-business-has-been-stolen-9604300.html\">100 per cent tariff on all movies<\/a> made outside the United States. He claimed that other countries had \u201cstolen&#8221; America\u2019s movie-making business, likening it to \u201cstealing candy from a baby,&#8221; and blamed California\u2019s leadership for letting Hollywood\u2019s dominance erode.<\/p>\n<p><iframe frameborder=\"0\" class=\"lazyload\" allowfullscreen=\"\" id=\"iframe-0\" src=\"\" data-src=\"https:\/\/truthsocial.com\/@realDonaldTrump\/115287691323395767\/embed\" width=\"100%\" height=\"550\"><\/iframe><\/p>\n<p id=\"1\" class=\"story_para_1\">This was not Trump\u2019s first swipe at the film trade, he had made a similar statement in May, but the latest post goes further by linking it directly to California\u2019s economy. It also represents the first time a US administration has proposed tariffs in the realm of digital entertainment. Until now, American trade policy has targeted tangible goods like steel, automobiles or electronics.<\/p>\n<p id=\"2\" class=\"story_para_2\"><strong>How Important Is The US Market For Indian Films?<\/strong><\/p>\n<p id=\"3\" class=\"story_para_3\">For Indian cinema, the United States has become one of the most prized overseas markets, thanks to its sizeable South Asian diaspora and steady appetite for Bollywood and regional films. As per a <em>News18<\/em> report, the US box office contributes 35 to 40 per cent of Bollywood\u2019s overseas revenues, while <em>Business Standard<\/em> report estimated that in 2024, the American market accounted for Rs 600\u2013800 crore, or around five to seven per cent of India\u2019s overall collections.<\/p>\n<p id=\"4\" class=\"story_para_4\">Across Hindi, Tamil, Telugu and Malayalam films, the US generates between $100 million and $150 million annually. Recent hits underline this dependence. <em>Kalki 2898 AD<\/em> earned $18.3 million in the US, making up 14.5 per cent of its global revenue. <em>Pathaan<\/em> grossed nearly $18 million, <em>Jawan<\/em> brought in $15.2 million, and <em>RRR<\/em> took $15.1 million in North America.<\/p>\n<p id=\"5\" class=\"story_para_5\">For Telugu cinema in particular, the US diaspora is a core audience, with premieres often scheduled around American holiday weekends. Losing such a market <a href=\"https:\/\/www.news18.com\/movies\/bollywood\/bejoy-nambiar-on-trumps-100-movie-tariff-well-see-a-dent-in-the-revenue-source-exclusive-9604552.html\">would not just dent revenues,<\/a> it would reshape how Indian films are financed and distributed.<\/p>\n<p id=\"6\" class=\"story_para_6\"><strong>What Impact Could Tariffs Have On Bollywood And Tollywood?<\/strong><\/p>\n<p id=\"7\" class=\"story_para_7\">The potential fallout is significant. A 100 per cent tariff would effectively double ticket prices, turning a $20 cinema outing into a $40 one. Such a spike could wipe out mainstream footfall.<\/p>\n<p id=\"8\" class=\"story_para_8\"><em>Business Standard<\/em> cited trade analyst Suniel Wadhwa\u2019s estimate that this could cut Indian films\u2019 US revenues by 30 to 40 per cent, with Bollywood tentpoles alone losing Rs 40\u201360 crore per release.<\/p>\n<p id=\"9\" class=\"story_para_9\">Distributors and exhibitors would inevitably respond to higher costs by cutting down the number of Indian films screened in <a href=\"https:\/\/www.news18.com\/movies\/telugu-cinema\/teja-sajjas-mirai-off-to-a-flying-start-eyes-1-million-mark-in-north-america-aa-ws-l-9567217.html\">American theatres<\/a>. Movie trade analyst Girish Wankhede told <em>BS<\/em> that that Hindi and Telugu releases would feel the pinch most. At the same time, higher prices could push some audiences towards piracy.<\/p>\n<p id=\"10\" class=\"story_para_10\">The financial shock would not be confined to exhibitors. Pradeep Dwivedi, CEO of Eros Media World, told <em>BS<\/em> that Indian producers rely heavily on overseas revenues for budget planning. If those fall away, big films may need to be scaled back, restructured or shelved.<\/p>\n<p id=\"11\" class=\"story_para_11\">Independent and festival-oriented releases could avoid the US altogether. <a href=\"https:\/\/www.news18.com\/movies\/bollywood\/priyanka-ghose-on-trumps-100-movie-tariff-box-office-of-big-films-could-be-affected-exclusive-ws-kl-9604535.html\">Filmmaker Priyanka Ghose told <em>News18<\/em><\/a> that while very big films might still weather the storm, the rest of the industry would face difficult choices.<\/p>\n<p id=\"12\" class=\"story_para_12\"><strong>Why Streaming Is A Bigger Concern<\/strong><\/p>\n<p id=\"13\" class=\"story_para_13\">Theatres may feel the impact first, but the longer-term risk lies with streaming. Trump\u2019s post did not specify whether his tariff would cover only theatrical releases or also films carried on Netflix, Amazon Prime, Disney+ and Zee5. If streaming is included, the economics of Indian content in the US could change overnight.<\/p>\n<p id=\"14\" class=\"story_para_14\"><a href=\"https:\/\/www.news18.com\/photogallery\/movies\/bollywood\/diljit-dosanjh-gets-international-emmy-nomination-his-must-watch-films-on-ott-ws-l-9597273.html\">OTT platforms<\/a> have become an essential outlet for Indian cinema abroad. But a tariff could force streamers to renegotiate licensing deals, cut exposure to Indian titles, or reduce payments to distributors.<\/p>\n<p id=\"15\" class=\"story_para_15\"><em>Moneycontrol<\/em> reported that even the threat rattled markets, with Netflix\u2019s stock dipping 1.5 per cent after Trump\u2019s post. In the short term, such uncertainty may discourage distributors from buying rights, and in the long run, Indian titles may find themselves edged out of American catalogues.<\/p>\n<p id=\"16\" class=\"story_para_16\"><strong>Can The US Even Tariff A Movie?<\/strong><\/p>\n<p id=\"17\" class=\"story_para_17\">This is where the idea runs into major legal and practical hurdles. Today, almost all films reach American theatres as Digital Cinema Packages (DCPs), encrypted files transmitted via satellite or secure servers. Streaming is entirely digital. The old practice of shipping physical reels, which could technically be taxed as imports, is obsolete. That leaves little tangible for US customs officials to intercept or tax at the border.<\/p>\n<p id=\"18\" class=\"story_para_18\">Trade law makes enforcement even trickier. Since the late 1990s, World Trade Organisation members, including the US, have observed a moratorium on customs duties for electronic transmissions. This agreement, renewed repeatedly, currently runs until March 2026. A 100 per cent tariff on digital film files would breach that commitment and expose the US to WTO disputes.<\/p>\n<p id=\"19\" class=\"story_para_19\">There is also the issue of classification. Under global trade rules, movies are treated as audiovisual services, not goods. The US itself benefits enormously from this framework, as Hollywood productions make it one of the world\u2019s largest exporters of cultural services and intellectual property. Trying to tax films as goods would contradict that position and invite both international challenges and domestic lawsuits.<\/p>\n<p id=\"20\" class=\"story_para_20\">In theory, a tariff on physical film prints might still be technically possible, but in today\u2019s digital distribution environment, that option is irrelevant. For digital files, enforcement would be shaky at best, and almost certainly challenged in court.<\/p>\n<p id=\"21\" class=\"story_para_21\"><strong>Why Bollywood Should Still Be Worried<\/strong><\/p>\n<p id=\"22\" class=\"story_para_22\">Even without clear enforceability, uncertainty alone is damaging. Distributors hesitate to buy rights when they cannot predict costs. Studios delay or renegotiate deals. Producers scale back revenue expectations. In diaspora-heavy hubs such as Edison in New Jersey, Dallas and Fremont, even the threat of higher ticket prices could deter audiences.<\/p>\n<p id=\"23\" class=\"story_para_23\">The squeeze would hit mid-tier and independent productions hardest, while big-budget spectacles might continue to draw crowds despite the cost. Some producers may attempt workarounds by structuring films as co-productions or partial US financing to argue \u201cdomestic&#8221; status, but until rules are defined, such strategies remain risky.<\/p>\n<p id=\"24\" class=\"story_para_24\">Priyanka Ghose told <em>News18<\/em> that cultural exchange through films is invaluable and should be encouraged, not restricted. Her warning highlights a broader concern: protectionism risks damaging not only box office figures, but also the cultural bridges Indian films have built with American audiences over decades.<\/p>\n<p id=\"25\" class=\"story_para_25\"><strong>Could Hollywood Also Face Retaliation?<\/strong><\/p>\n<p id=\"26\" class=\"story_para_26\">Industry voices caution that Trump\u2019s move could backfire. If the US taxes foreign films, other governments may respond in kind, targeting Hollywood releases abroad. That would hurt American studios, which dominate screens in India and much of Asia.<\/p>\n<p id=\"27\" class=\"story_para_27\"><strong>What Lies Ahead For Indian Cinema?<\/strong><\/p>\n<p id=\"28\" class=\"story_para_28\">For now, Trump\u2019s declaration is a political statement rather than a codified policy. There is no legal paperwork, timeline or clarity on whether tariffs would be calculated on production costs, box office revenues or distribution fees. Questions also remain over whether part-US productions would qualify as exempt.<\/p>\n<p id=\"29\" class=\"story_para_29\">If tariffs materialise, Bollywood may have to tilt even more heavily towards streaming, though that too faces a looming challenge. The expiry of the WTO\u2019s digital moratorium in March 2026 could open the door to customs duties on OTT imports, a change that would transform the global economics of film distribution.<\/p>\n<p id=\"30\" class=\"story_para_30\">For India\u2019s Rs 187-billion film industry, which, as per EY\u2013FICCI data, contracted by five per cent in 2024 despite more than 1,600 releases, the loss or even uncertainty of the American market would come at a vulnerable time.<\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"Karishma Jain\" title=\"Karishma Jain\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2023\/11\/karishma-jain-2023-11-fd14e93f60217db0c1c22b17ff8878ff.jpg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/karishma-jain-24301.html\" class=\"jsx-95088aad1b3c53cd atamail\">Karishma Jain<\/a><\/p>\n<p>Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-1678181597 atbtlink fp\"><span>First Published:<\/span><\/p>\n<div class=\"rs\">\n<p>September 30, 2025, 10:43 IST<\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-1678181597 brdcrmb\"><a href=\"https:\/\/www.news18.com\/\">News<\/a>  <a href=\"https:\/\/www.news18.com\/explainers\/\">explainers<\/a>  <span class=\"brdout\"> Trump\u2019s 100% Film Tariff: Is It Even Possible, And What Would It Mean For Indian Cinema?<\/span><\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-c9f81425ec968c48 jsx-1678181597 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/explainers\/trumps-100-film-tariff-is-it-even-possible-and-what-would-it-mean-for-indian-cinema-ws-l-9604967.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:September 30, 2025, 10:54 IST Indian cinema could take a direct hit from Trump\u2019s tariff threat, but Hollywood too may not escape the fallout US President Donald Trump earlier in May indicated that he would impose levies of filmmaking and introduce tariffs. (IMAGE: REUTERS) On 29 September, US President Donald Trump took to his&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16483,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-16482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=16482"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/16482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/16483"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=16482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=16482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=16482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}