Indian Filmmakers On Edge As Trump Targets Foreign Movies With 100 Per Cent Tariff

India’s film industry is facing growing concern after  US President Donald Trump threatened to impose a 100 per cent tariff on films produced outside of the United States.

With the US accounting for about 40 per cent of India's overseas box office revenue, industry leaders are scrambling to assess the implications of such a move—though few specifics have been disclosed, reported Reuters.

One of the biggest unknowns remains the definition of "foreign produced." Filmmaker Anubhav Sinha, known for his Netflix series IC 814: The Kandahar Hijack, pointed out, "The real question is how the term 'foreign produced' will be defined, and until that's clear, it's hard to say anything."

He added that it is still uncertain whether services such as post-production would fall under the scope of the proposed tariff.

Ripple Effects Across the Ecosystem

The Indian film sector, which employs over 272,000 people, brought in overseas revenue of approximately Rs 20 billion ($237 million) in fiscal year 2024, according to a report by Deloitte and the Motion Picture Association.

A substantial portion of this revenue originated from the US, where an estimated 5.2 million people of Indian descent form a key overseas audience, the news agency stated.

“The United States is one of the most important overseas markets for Indian cinema, largely due to the substantial diaspora,” said producer Madhu Bhojwani, who co-produced Airlift. “Any increase in ticket prices resulting from these tariffs would directly affect audience turnout, compounding the challenges posed by evolving consumer behaviour and broader industry headwinds," the executive, who is also the co-founder of Emmay Entertainment and Motion Pictures, added.

Hollywood's engagement with India has also deepened over the years. India has served as both a setting and production hub for several Hollywood films including Slumdog Millionaire, Zero Dark Thirty, The Dark Knight Rises, and Eat, Pray, Love.

“Almost 10 to 15 (foreign) movies are shot in India every year, and our movie industry will be impacted very badly,” warned film trade analyst Komal Nahta.

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Concerns Over Jobs, Budgets, and Distribution

The proposed tariff could have serious implications for Indian service providers working on outsourced projects. “We can expect a potential decline in outsourced work from US studios to Indian vendors, which could have notable implications for the Indian media services sector,” Bhojwani noted.

Pradeep Dwivedi, CEO of Eros International Media, added that the potential revenue dip from US markets could disrupt the financial models of Indian producers. “If revenue from the US drops, it could affect budget planning and profitability for Indian production houses. Big-budget films counting on overseas revenue could be restructured or scaled back.”

Mid-sized and independent films may be particularly vulnerable. “Even a 30 per cent drop in revenue for such mid-scale movies would be a significant dent,” said Telugu film producer Raj Kandukuri, known for Pelli Choopulu. “There are a sizeable number of students in the United States who watch movies, they will not spend high on ticket prices.”

The economic consequences could also drive Indian filmmakers to pivot further toward digital platforms. “US distributors might be less inclined to pick up Indian titles due to the increased cost,” Dwivedi said. “This could result in fewer screens, smaller releases, and a shift toward digital platforms instead of theatrical. The tariff would likely accelerate a move toward direct-to-digital releases on platforms like ErosNow, Netflix, Amazon Prime, and Hulu.”

Describing the policy threat in stark terms, actor and producer Prakash Raj called Trump’s approach “tariff terrorism.”

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