How to slap 100% tariff on Donald Trump’s foreign films can hit the Indian film industry
Donald Trump gives a blow to Indian films! The 100% tariff proposed by US President Donald Trump on foreign films presents an unexpected challenge to the Indian film industry, which potentially affects its business success and stability in an important international market, according to industry leaders. Trump’s justification for this remedy is described as the “very fast death” of the American film industry.The United States remains an important region for Indian cinema, with a sufficient Indian population of about 5.2 million, as reported by the Pew Research Center. Hindi films receive 40–60% of their international earnings from the US, while South Indian productions produce between 12-70% of their foreign revenue from this market.The proposed tariff will require distributors to pay an additional $ 1 million in taxes, when American distribution rights for an Indian film will be priced at a price of $ 1 million. Industry officials told ET that it could affect production companies that especially make materials for Indian migrants.
Senior officials said that production companies would need to reconsider their financial plan and distribution approaches. They warns that any increase in movie ticket prices to compensate for advanced distribution expenses can occur in a low appearance for Indian films in American cinemas, later affecting their revenue performance.Nevertheless, a representative of the White House clarified on Monday that the tariff decision was pending. Pradeep Dwivedi, Chief Executive Officer of the Group of Aeros International Media, India, said that if implemented, “Tariff effectively doubles the cost of importing Indian films.”Dwivedi said that a possible decline in the presence of Indian cinema in American theaters may reduce India’s cultural impact and soft power through films.Tiwari, a creative director and partner of Stuart Entertainment, Adi Tiwari said: “Thanks to high ticket prices and better revenue division, the American market an average offers 30-50% pure foreign earnings for any successful Indian film. Therefore, losing the US sector will be like losing platinum cards in a cash economy.”Sunil Wadhwa, the co-founder and director of Karmik Films, says: “It is important to understand that this tariff will not give exemption to offices in the US. Films produced outside the US will have to pay 100% tariffs. Risk.,Industry leaders assess that the 100% tariff proposed on non-American films by the Trump administration has double objectives. The main intent appears to be a counter -protest against China’s borders on Hollywood film imports, with the influence of tariffs centered on Indian and Chinese cinema. Additionally, it wants to address the declining global revenue of Hollywood products.Database, an American film database, shows the figures of box office Mojo that the total income of 200 Hollywood release in 2024 was $ 24.8 billion dollars, which was showing a 26% decrease compared to the previous year.With this new tax looming, industry experts estimate a significant change in distribution strategies, especially more Indian films expecting that they choose for immediate streaming platform release.
