Former U.S. President Donald Trump has proposed a 100% tariff on all foreign-made movies, claiming that the American film industry is dying rapidly due to incentives offered by other countries to attract filmmakers. Trump argues that this trend poses a national security threat, as it influences messaging and propaganda.
India’s film industry, which earns 40% of its overseas revenue from the U.S., has expressed concerns over the potential impact of this tariff. Filmmakers, producers, and distributors are uncertain about how the term “foreign-produced” will be defined, and whether post-production services will also be affected.
Industry experts warn that the tariff could double the cost of exporting Indian films to the U.S., where the Indian diaspora is a significant audience. Producer Madhu Bhojwani noted that any increase in ticket prices due to the tariff would directly affect audience turnout, adding to existing challenges in the industry.
Hollywood has also relied on India for on-ground production and post-production services, particularly in visual effects, due to India’s skilled talent pool. If the tariff extends to these services, it could reduce outsourced work from U.S. studios to Indian vendors, impacting the Indian media services sector.
Prominent Indian actor and producer Prakash Raj criticized Trump’s move, calling it “tariff terrorism”. Film trade analyst Komal Nahta warned that 10 to 15 foreign movies are shot in India annually, and the industry could suffer significantly if the tariff is enforced.
Filmmaker Vivek Agnihotri voiced strong opposition, stating that the tariff could collapse India’s struggling film industry. He urged Indian film leaders to unite and fight against the policy instead of focusing on glamour and fame.
Trump defended his decision, stating that Hollywood and other U.S. film hubs are being devastated by foreign incentives. He blamed California Governor Gavin Newsom for Hollywood’s decline and accused other nations of “stealing” America’s filmmaking talent.
The proposal has raised concerns about global film economics, cultural exchange, and cross-border storytelling. Industry experts believe that big-budget films relying on overseas revenue may need to restructure or scale back their production plans.
