Shares of media and entertainment companies declined on Tuesday after US President Donald Trump announced a 100 percent tariff on movies made outside the United States.
"Our movie-making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby’," Trump posted on Truth Social on Monday. "To solve this long time, never ending problem, I will be imposing a 100 percent Tariff on any and all movies that are made outside of the United States," he added.
The move is expected to impact the Indian film industry, which exports films in multiple languages to the US, where they enjoy significant popularity among the diaspora.
The Nifty Media index fell over 1 percent, with seven of its 10 constituents trading in the red.
Prime Focus was the top loser, slipping 5 percent to hit the lower circuit at Rs 175.94 on the NSE. PVR INOX dropped up to 3 percent to Rs 1,072.1, while Mukta Arts declined nearly 2 percent to Rs 68.
Trump had first floated the tariff threat in May. However, no timeline has been given for its implementation.
Analysts said it remains unclear how such tariffs would be enforced, given that movies and television shows are also distributed digitally. Questions also remain on how the measure would apply to US films shot in foreign locations.
The announcement comes close on the heels of fresh tariffs imposed by the Trump administration on pharmaceutical products.
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