Washington D.C. [USA]: Continuing his trend of imposing tariffs, US President Donald Trump on Sunday announced plans to levy a 100% tariff on movies made outside the United States. The announcement came via a post on his social media platform TruthSocial, where Trump described the situation as “stealing candy from a baby” and criticised California’s Governor for failing to protect the domestic movie industry.
Impact on Indian cinema
While specifics regarding the effective date and implementation of the tariff are yet to be clarified, industry experts say the move could significantly affect Indian films that have historically performed well in the US market. Blockbusters such as RRR, Baahubali, and Pathaan have contributed substantially to box office revenue from the US, a key market for Indian studios seeking international reach.
“The US has been an important revenue stream for Indian cinema, especially for big-ticket films with overseas distribution rights. A 100% tariff will make the market less attractive and could reduce release plans and promotional activities,” said a senior distribution executive in Mumbai.
Broader trade policy context
This new measure follows Trump’s recent tariffs on pharmaceutical products, announced earlier this month. Starting October 2025, the US government will impose a 100% tariff on branded and patented pharmaceutical imports unless companies establish manufacturing units in the US. The Indian Pharmaceutical Alliance clarified that only patented and branded drugs are affected, leaving generic medicines outside the purview of the tariffs.
“While this affects only patented and branded products, it is another example of the US pushing domestic manufacturing over imports. Companies need to reassess supply chains and production strategies,” an IPA spokesperson said.
Political and economic implications
Trump’s tariffs reflect his administration’s broader “America First” policy, targeting foreign competition across multiple sectors. Experts suggest that the movie industry, though not traditionally part of trade wars, is increasingly being viewed through an economic-nationalist lens.
“Hollywood has been insulated from such trade conflicts in the past, but Trump’s rhetoric and policy approach signal a willingness to intervene even in entertainment. This could have diplomatic and cultural repercussions, especially with countries like India that have a significant stake in the US market,” said a trade analyst based in New York.
The announcement has sparked debate among filmmakers, distributors, and cultural commentators. While some argue that protecting domestic jobs is a legitimate goal, others warn that a blanket 100% tariff on foreign movies could reduce diversity in cinema and create tensions with international partners.
Conclusion
With the details still emerging, the international film industry, particularly Indian studios with a strong US presence, is closely monitoring developments. The potential tariff could reshape distribution strategies, box office revenues, and the broader dynamics of global film trade, emphasizing the growing intersection of culture and international economic policy.