Trump's 100% Film Tariff Threatens Indian Cinema's £130 Million U.S. Market

United States President Donald Trumps announcement of a potential 100% tariff on all foreign-made films poses a significant threat to global cinema, particularly impacting Indian films lucrative U.S. box office. Trump, citing American moviemaking losing ground to foreign rivals, proposed the tariff on Truth Social.

The U.S. is a crucial overseas market for Indian cinema, accounting for 30 to 40% of its international collections. In 2024 alone, Indian films grossed an estimated £130 to £140 million in the American market.

Telugu cinema leads with over £40 million annually, followed by Tamil films at approximately £20 million, and Malayalam cinema contributing around £6.5 million. These revenues are largely driven by the strong diaspora presence, with major releases often opening in hundreds of U.S. locations.

Industry experts warn that such an unprecedented tariff could lead to massive disruptions, including revenue cuts, distribution challenges, and a weakening of the cultural connection Indian films share with the American diaspora. The proposal's vagueness, especially concerning enforcement and classification of cross-border co-productions, adds to the uncertainty.