Donald Trump’s 100% movie tax: Indian cinema’s US cash cow about to be gutted
The tariff would be the first U.S. tax on cross-border delivery of digital entertainment—a move that directly targets the now-digital pipeline of global cinema, from theatrical Digital Cinema Packages (DCPs) to streaming giants like Netflix and Amazon.
- Sep 30, 2025,
- Updated Sep 30, 2025 7:31 AM IST
President Donald Trump has launched a full-blown assault on foreign films, announcing a 100% tariff on all movies made outside the United States, a first-of-its-kind strike that could impact Indian cinema’s booming business in North America.
In a late-night post on Truth Social, Trump accused other countries of “stealing” Hollywood’s dominance and vowed to punish foreign productions with sky-high import costs.
“Our movie-making business has been stolen from the United States of America by other countries, just like stealing candy from a baby,” Trump declared. “Therefore, I will be imposing a 100% tariff on any and all movies that are made outside of the United States.”
The tariff, if implemented, would be the first U.S. tax on cross-border delivery of digital entertainment—a move that directly targets the now-digital pipeline of global cinema, from theatrical Digital Cinema Packages (DCPs) to streaming giants like Netflix and Amazon.
And the timing couldn’t be worse for Indian filmmakers.
The U.S. is one of the most lucrative overseas markets for Indian films, generating an estimated $100–150 million annually across Hindi, Tamil, Telugu, and Malayalam releases. That revenue stream is now under threat.
A 100% tariff would instantly double ticket prices in U.S. theatres—turning a $20 movie night into a $40 ask. For Indian films, which rely heavily on diaspora audiences, such a spike could wipe out mainstream footfall overnight.
“It’s a bloodbath waiting to happen,” said a Mumbai-based film distributor. “Margins are already thin. This kind of pricing will break the model. Most Indian films just won’t be viable in the U.S.”
The impact would be widespread. Massive blockbusters like Baahubali 2, Kalki 2898 AD, Pathaan, and Jawan have raked in tens of millions from U.S. audiences. Under the new tariff, such success stories could become rare exceptions.
And it’s not just theatres feeling the heat—streaming is on the chopping block too.
The tariff applies to all foreign-made movies delivered digitally, which includes content streamed on platforms like Prime Video, Disney+, Hotstar, and Zee5. Distributors fear reduced licensing deals, slashed margins, and shrinking overseas demand.
There are growing concerns that the U.S. move could spark retaliatory tariffs, impacting not just Indian exports but the Hollywood films that dominate Indian screens.
If this policy is enforced, industry insiders warn, Indian cinema could lose a critical international lifeline—and face a long, painful correction in its global ambitions.
President Donald Trump has launched a full-blown assault on foreign films, announcing a 100% tariff on all movies made outside the United States, a first-of-its-kind strike that could impact Indian cinema’s booming business in North America.
In a late-night post on Truth Social, Trump accused other countries of “stealing” Hollywood’s dominance and vowed to punish foreign productions with sky-high import costs.
“Our movie-making business has been stolen from the United States of America by other countries, just like stealing candy from a baby,” Trump declared. “Therefore, I will be imposing a 100% tariff on any and all movies that are made outside of the United States.”
The tariff, if implemented, would be the first U.S. tax on cross-border delivery of digital entertainment—a move that directly targets the now-digital pipeline of global cinema, from theatrical Digital Cinema Packages (DCPs) to streaming giants like Netflix and Amazon.
And the timing couldn’t be worse for Indian filmmakers.
The U.S. is one of the most lucrative overseas markets for Indian films, generating an estimated $100–150 million annually across Hindi, Tamil, Telugu, and Malayalam releases. That revenue stream is now under threat.
A 100% tariff would instantly double ticket prices in U.S. theatres—turning a $20 movie night into a $40 ask. For Indian films, which rely heavily on diaspora audiences, such a spike could wipe out mainstream footfall overnight.
“It’s a bloodbath waiting to happen,” said a Mumbai-based film distributor. “Margins are already thin. This kind of pricing will break the model. Most Indian films just won’t be viable in the U.S.”
The impact would be widespread. Massive blockbusters like Baahubali 2, Kalki 2898 AD, Pathaan, and Jawan have raked in tens of millions from U.S. audiences. Under the new tariff, such success stories could become rare exceptions.
And it’s not just theatres feeling the heat—streaming is on the chopping block too.
The tariff applies to all foreign-made movies delivered digitally, which includes content streamed on platforms like Prime Video, Disney+, Hotstar, and Zee5. Distributors fear reduced licensing deals, slashed margins, and shrinking overseas demand.
There are growing concerns that the U.S. move could spark retaliatory tariffs, impacting not just Indian exports but the Hollywood films that dominate Indian screens.
If this policy is enforced, industry insiders warn, Indian cinema could lose a critical international lifeline—and face a long, painful correction in its global ambitions.