US President Donald Trump's decision to impose a 100 per cent tariff on foreign films screened in the United States has sent shockwaves through the global film industry, especially the Telugu film industry
Hyderabad: US President Donald Trump's decision to impose a 100 per cent tariff on foreign films screened in the United States has sent shockwaves through the global film industry, especially the Telugu film industry.
Jagan Bukkaraju, a longtime US resident and active member of Telugu cultural circles, said: “Big-star Telugu film releases are huge events for our community, especially in cities like California, Texas, New Jersey, and New York. We already spend up to $30 per ticket. Add travel and other costs, and it becomes expensive. If this tariff is also implemented, many of us may stop going to theatres altogether.”
The United States is a large market for Telugu movies owing to a large Telugu-speaking population. It contributes significantly to the Telugu film industry’s revenue stream and allows Telugu film producers to take up large-scale projects.
“If this tariff goes through, Indian cinema stands to lose a large chunk of overseas revenue. Each year, about 20 major Telugu films release in the US market. If the foreign films are held back, many US theatres could face closure,” said Sunil Narang, producer at Asian Cinemas and secretary of the Telangana Film Chamber of Commerce. Kalki 2898 AD, starring Prabhas, earned $18.51 million in North America alone.
The move will also affect the bigger Indian film projects as they need scale-down expenditure in view of lower revenue expectations.
In a post on social media portal Truth Social, the US President said he was directing the commerce department and his trade representative to “immediately begin the process of instituting” the levy on foreign movies. “We want movies made in America, again!” Trump continued.
He further said: "This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda."
Speaking to Deccan Chronicle, film analyst G.K. Mohan said it’s too early to comment, as modalities have not been yet announced. “Last year, Indian films grossed 300 million dollars in the US. If the tariff is applied without offering any rebate for India, Indian producers will suffer major losses. Diaspora footfall in theatres will decline, and viewers may shift to OTT platforms.”
He, however, believes that the real target of the Trump administration is China and Japan, as these movies have a larger market share in the US than Indian movies.
The tariff move will also impact the visual effects sector and post-production space in Hyderabad as several American studios frequently film in countries like India to cut production costs and access world-class technical talent.
Rajesh Agnoor, executive producer of films like Crocodile and Beeper, which were shot in India, warned “This move could discourage Hollywood studios from working in India. It would be a serious blow to our artists, technicians, and creative professionals.”
