Indian film industry has mixed response to Trump's 100% film import tariff

Industry leaders say Trump's proposed film tariff may hurt US box office earnings for Indian films, especially affecting smaller producers and Telugu cinema

The Indian film industry has given a mixed response to US President Donald Trump’s announcement of a 100 per cent tariff “on any or all movies coming into the country (US) that are produced in foreign lands”.

 

While some executives believe it could deliver a major financial blow to the theatrical business, others say it won’t substantially affect the broader film industry.

 

However, industry executives Business Standard spoke with said it was too early to draw conclusions, as details about how the tariff would be implemented remain unclear. So far, the American government has not indicated whether these tariffs would apply to content released on streaming platforms as well. The announcement also comes at a time when the Indian film industry is struggling at the domestic box office (BO), and theatres are working to attract larger footfall.

 

“The announcement has come, and if it gets implemented, the first impact I foresee is on the theatrical business of our films in the US market,” said Shibasish Sarkar, president of the Producers Guild of India and group chief executive officer, Reliance Entertainment.

 

“Indian films gross about $100 million at the US BO. If this tariff is imposed, either exhibitors will hike ticket prices, making it expensive for consumers, which could sharply reduce footfall, or they’ll try to absorb the cost and pass on the loss to producers, thereby dramatically reducing the producers’ share,” said Sarkar.

 

He added that either way, the impact of the tariff would fall on the producers’ share from a theatrical standpoint. Overall, the revenue of Indian films in the US market would take a hit.

 

Backing Sarkar’s view, movie trade analyst Girish Wankhede said these tariffs would be a major financial strain on the industry.

 

Wankhede noted that in 2024, the US market contributed about 5–7 per cent — ₹600–800 crore — of Indian cinema’s total BO collections. He explained that the tariffs could reduce the number of Indian films released in the US and dampen viewership for Indian content in theatres. Smaller or independent filmmakers, he said, would likely be the worst affected, while large production houses may still manage the increased cost of distribution.

 

“This (tariff) is bad. A lot of Indian movies had begun doing well at the US BO,” said a source. “Hindi cinema has always had a presence, but recently, Telugu films have gained traction in the US, especially as many Telugu-speaking people have moved there for better opportunities. All this will be impacted.” The source added that if the tariffs are implemented, it will become harder for producers to achieve a good return on investment. 

 

On the other hand, Vipul Amrutlal Shah, chairman and managing director of Sunshine Pictures, said that while the US has traditionally been a sizeable market for Indian films, especially among the diaspora, a 100 per cent tariff is unlikely to trigger an extensive setback.

 

“The Indian film industry has a robust domestic audience and has been increasingly focusing on diverse international markets. This development may prompt producers to explore alternative distribution strategies and markets, mitigating the potential impact of the US tariff,” said Shah, whose company has produced films such as The Kerala Story and Holiday: A Soldier Is Never Off Duty, starring Akshay Kumar.

 

He further said the immediate effect on investments may be a reevaluation of strategies regarding US releases.

 

“The Indian film industry has shown resilience and adaptability in the face of global challenges. Content-wise, filmmakers will likely continue creating stories that resonate with both domestic and international audiences, leveraging digital platforms to reach viewers worldwide. The BO impact may be minimal, given the growing importance of other international markets and the strength of the domestic BO,” he added.

 

Meanwhile, Mautik Tolia, managing director of Bodhitree Multimedia, an entertainment content production company, said the tariffs will have a major impact on European cinema and on film shoots that take place in other countries that offer rebates.

 

“The Indian film industry derives around 5 per cent of its revenue from the US market. This could have a potential impact but is manageable, especially since the Indian diaspora tends to be more affluent and may be able to absorb the cost increase,” said Tolia.

 

He also said the Indian industry still generates most of its revenue from local markets. As such, the tariff is unlikely to lead to a change in the current content strategy. 

Key Insights

 

- Indian films annually make $100 million (gross) at the US box office, according to Producers Guild of India

 

- In 2024, the US market contributed about 5-7%, or ₹600 crore to ₹800 crore, to Indian film’s box office collection, according to trade analysts

 

- It could have a severe impact on small or independent producers and filmmakers

 

- The tariffs would also result in a lower volume of Indian films being released in the US