Trump Tariff May Make Tollywood Go Into a Tailspin
Trump’s tariff is a threat to the global film business
Hyderabad: In a move that is likely to impact the Indian film industry, US President Donald Trump on Monday announced a 100 per cent tariff on movies shot and produced outside the country. He accused other countries of stealing the film-making business from America.
Announcing the decision on his Truth Social platform, Trump said, “Our movie-making business has been stolen from the United States of America, by other countries, just like stealing ‘candy from a baby’... California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.”
While Trump gave no granular details about the date of its implementation and what percentage of the movie is expected to be shot in the US to escape the punitive duty, it is believed that the tariff was primarily aimed at stopping Hollywood producers from shooting movies in foreign locations in Canada, Australia and the United Kingdom.
However, the movie tariff is also expected to have wider ramifications on the Indian film industry, which earns a significant box office collection from the 5.4-million-strong Indian diaspora in America.
As all Indian language movies, which are popular among the Indian diaspora in the US, are made in India, they will attract the 100 per cent tariff, burning a hole in the wallets of Indian movie-goers in the United States.
Tollywood would be particularly hit as Telugus are in greater numbers in the US than in any other country. Hindi speakers, on the other hand, are well dispersed across the Anglosphere, including Canada, Australia, the UK and several other African countries.
Speaking to Deccan Chronicle, film producer Lagadapati Sridhar said, “Telugu movies have been steadily expanding their fan base across North America. Big releases have contributed nearly 10–15 per cent of their budgets from the United States. But Trump’s tariff could nearly destroy this model.”
He said the tickets for Telugu movies, which are already priced at a premium over Hollywood movies in the US, will be hard hit. “Moviegoers in the US spend between $12 and $18 to watch a Hollywood movie. However, Telugu film distributors typically charge between $25 and $40 per ticket to cash in on Telugu-speaking NRIs’ craze for Prabhas, Allu Arjun, Ram Charan, NTR, Chiranjeevi, and Balakrishna.”
“If a ticket, which was recently priced $25, suddenly costs $50 after Trump’s tariff, the Telugu movie audience could be forced to cut down on their theatre visits — especially when many of them already travel three to four hours to reach a screening,” he said.
Blockbusters such as ‘Baahubali 2’, ‘RRR’, ‘Pushpa: The Rise’, ‘Kalki 2898 AD’, ‘Salaar’, and ‘Devara’ have grossed anywhere between `50 crore and `200 crore in the US alone, while mid-range films like Mahanati, DJ Tillu, and Mirai have earned about `30 crore.
“The US remains the single biggest overseas market for Telugu cinema — much higher than Europe or Australia. Trump’s decision will force producers to redo their calculations,” Sridhar warned.
However, the impact on English-speaking countries, which have been wooing the Hollywood producers, will be greater than the Indian film industry.
While Canada has been one of the hot favourites for Hollywood filmmakers, as it offers up to a 35 per cent tax credit on labour costs, the UK offered a 25 per cent tax rebate. Other countries like Spain, Italy, Georgia, and New Zealand also offered attractive packages for Hollywood movies.
In May 2025, Trump had called out the UK, Australia, and Canada for what he called “unfair practices” in wooing filmmakers and had asked the US commerce department to draw up tariff proposals to prevent business from going out.
