US President Donald Trump on Monday declared that America will impose a 100% tariff on every movie made outside the country, setting off ripples across the global entertainment industry.
In his post on Truth Social, the platform he owns, Donald Trump wrote: “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby.”
Further, he added, "California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! President DJT"
The announcement didn’t come completely out of nowhere—Donald Trump had hinted at the possibility back in May. Still, industry insiders say the lack of specifics at the time left studios and distributors unsure about what exactly he meant. Now, with the hammer dropped, the consequences are starting to sink in.
Bollywood and Hollywood Brace for Impact
According to a Reuters report, the United States accounts for nearly 35 to 40 percent of overseas box office earnings for Indian films. That makes it Bollywood’s single most important international market. Regional cinema too has relied heavily on the diaspora audiences spread across American cities.
Analysts warn the fallout could be brutal. Ticket prices, distribution fees, and marketing spends may all double if tariffs are enforced fully. For Indian producers working on mid-budget or small films, the math simply won’t add up.
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Hollywood won’t escape unscathed either. Major studios have co-production deals and global release strategies built around cross-border collaboration. A 100% tariff means those numbers may suddenly look unworkable.
Indian Diaspora Faces Higher Costs
The move is also a blow to the Indian diaspora in the US, estimated at over 5.2 million. With higher ticket prices and fewer releases likely making it to theatres, moviegoers could be forced to cut back.
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FAQs
Q1: What tariff did Donald Trump announce on foreign films?
Donald Trump announced a 100% tariff on all movies made outside the United States.
Q2: How will this affect Indian cinema?
The US is the biggest overseas market for Bollywood. A 100% tariff could double costs and make many releases financially unviable.
Q3: What does this mean for audiences?
Indian diaspora in the US may face higher ticket prices and fewer theatrical releases, leading to a stronger shift toward OTT platforms.
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