On 5th May (local time), the President of the United States, Donald Trump, imposed a 100% tariff on any and all movies produced in foreign lands and released in the US. In a post on the social media platform Truth Social, Trump called such movies a “threat to national security” and claimed that, because of the incentives provided by foreign countries, filmmakers and studios have shifted outside the US.
In his post, Trump said, “The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
According to ProdPro, production spending in the US stood at $14.54 billion in 2023, which was down by 26% compared to 2022. However, countries such as Australia, New Zealand, Canada, and the UK saw an increase in spending over the same period.
According to a report on CNN, it is unclear how the US administration intends to impose a 100% tariff on films made outside the US and released in the country. Films are essentially intellectual property and not goods. They can be described as services, which are not currently subject to tariffs. However, the United States Trade Representative (USTR) states that some services can still face other trade restrictions, such as special regulations or tax benefits granted to local companies.
If imposed, it could make things difficult for American filmmakers, as other countries might retaliate. They may stop offering incentives and could impose additional taxes on films made in the US, making it harder for American filmmakers to attract viewers to cinemas.
Furthermore, certain stories require filming in real locations outside the US. If tariffs or penalties are introduced, it would discourage filmmakers from shooting abroad, which would undoubtedly compromise quality and authenticity.
Such tariffs could also reduce global collaboration. Modern films often involve international talent, including actors, crews, and editors. Many films in the US are edited in foreign countries such as India, where studios offer VFX editing for major productions.
For example, according to Filmfare, VFX elements for films such as The Jungle Book, Life of Pi, Avengers: Endgame, Thor: The Dark World, Gravity, and many others were completed in India. If tariffs are imposed, the cost of hiring Indian VFX companies would increase severalfold.
Not to forget, it will also make it significantly more expensive for streaming services to release foreign films and shows on their platforms in the US, which may further lead to an increase in monthly subscription fees. For instance, Korean TV series are highly popular in the US. According to Polygon, viewership numbers for TV series produced in South Korea rose by 200% in the US between 2019 and 2021 and have continued to increase steadily since then. For streaming platforms like Netflix, releasing such content will become costlier due to the tariff.
How tariffs will affect Indian filmmakers
As the US administration has received the green light to impose a 100% tariff on foreign films, it will become expensive for Indian filmmakers to release their films in the US. It is notable that Indian films have performed exceptionally well in the US over the past decade.
According to IMDb, the highest-grossing Indian movies in the US include Baahubali 2: The Conclusion ($21.3M / ₹1,767 crore), Kalki 2898 AD ($15M / ₹1,245 crore), RRR ($13.9M / ₹1,154 crore), Pathaan ($11.4M / ₹946 crore), Pushpa: The Rule – Part 2 ($11M / ₹913 crore), Jawan ($9.95M / ₹826 crore), Baahubali: The Beginning ($8.46M / ₹703 crore), Animal ($7.90M / ₹656 crore), Jailer ($7.70M / ₹639 crore), and Salaar ($7.29M / ₹605 crore). Interestingly, seven out of the top ten highest-grossing Indian films in the US are from the South.
It is evident that Indian films, particularly from the South Indian film industry (Tollywood), perform well in the US. However, the tariff proposed by the US President will make it more expensive and difficult for Indian filmmakers to release films in the US. Ticket prices will rise, which could further deter audiences from visiting cinemas.
Notably, in 2018, the US box office reached $12 billion. After the pandemic hit, it plunged to $2 billion. In the aftermath, several theatres shut down, and a significant portion of the audience shifted to streaming platforms such as Netflix and others, particularly those run by the studios themselves. Indian films account for only a small share of the US box office, and higher ticket prices would mean even lower collections in an already inflation-hit economy like that of the US.
US–China trade war now includes the film industry
China is the world’s second-largest film producer. In April 2025, Beijing announced that it planned to “moderately reduce” the number of US films released and viewed in China. The decision came against the backdrop of the US–China trade war.
In a statement, the China Film Administration said, “The US government’s erroneous practice of imposing excessive tariffs on China is likely to further diminish the Chinese audience’s favourable perception of American films.”
Notably, although China is a huge market for US films, the Asian giant has capped the number of foreign films for decades. Reportedly, in the early 1990s, it formalised an agreement limiting imports to 10 per year. This did not initially affect the US market, but when Titanic grossed $44 million in China in 1998, it prompted Hollywood to recognise China as a potential market.
In 1999, negotiations led China to double the number of foreign films to 20, which was further increased to 34 in 2012. In 2024, 33 US films were released in China, generating total box office receipts of $722 million.
Similarly, several Chinese films have earned substantial amounts in the US. The Great Wall made around $35 million, while Ne Zha 2, released in 2025, earned approximately $20 million in the US, making it the highest-grossing non-English-dubbed international animated film in North America.
In conclusion, the imposition of 100% tariff on foreign films by the US could result in a significant blow to the Indian film industry, specifically at the time when its global footprint is expanding. South Indian cinema has consistently delivered high-grossing hits in the US. It may face severe barriers in accessing one of its most lucrative overseas markets. Rising ticket prices, reduced incentives, and shrinking international collaborations could make it financially unviable for many Indian filmmakers to release their films in the US which will lead to devastating effects on cultural exchange and commercial growth that Indian cinema has steadily built over the past decade.
