BY NAMITA DOGRA SUDAN
U.S. President Donald Trump’s announcement of a sweeping 100% tariff on all foreign-made films has sent shockwaves through the global entertainment industry, with India’s prolific Bollywood sector bracing for severe consequences. Indian filmmakers warn the tariff could devastate their overseas revenues, while American studios fear global retaliation and millions of Indian Americans worry about losing affordable access to the cultural lifeline provided by Bollywood films.
In a sharply worded post on Truth Social, Trump framed the tariffs as a matter of national security. “The Movie Industry in America is DYING a very fast death,” he wrote. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. … Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA.”
Bollywood leaders quickly sounded the alarm. Vivek Agnihotri, director of the acclaimed The Kashmir Files, warned that the tariff would be “a disastrous move” that could collapse India’s struggling film industry. “Indian film leaders must wake up, unite, and fight this threat instead of chasing paparazzi and self-glorification,” he said in a social media post. Veteran Indian producer Mukesh Bhatt was equally blunt, telling reporters: “It makes no business sense. Even a Hollywood producer can’t afford to shoot everything in America. You’re not helping; you’re destroying.” Director Shekhar Kapur stressed that Hollywood itself depends on the international market, noting that over 75% of Hollywood’s box office comes from outside the U.S., with large portions of production budgets spent overseas.
Hollywood’s global business model is deeply intertwined with international revenues and production partnerships. Retaliatory tariffs from countries like China, India, and European Union members could severely shrink Hollywood’s access to foreign markets. Many U.S. films are shot abroad for creative and financial reasons, and the new tariff could force productions back home, raising costs and limiting flexibility. Investors have taken notice, and though no major drops have yet been recorded, analysts warn that extended trade tensions could unsettle stocks for entertainment giants like Disney, Netflix, Warner Bros. Discovery, and Paramount.
For India, the stakes are particularly high. Bollywood produces about 1,800 films per year, more than any other country, and exports roughly $200 million worth of films annually to the U.S., largely serving the Indian diaspora of around 4.7 million people. Currently, Indian films in the U.S. command ticket prices of $15–20, but after the tariff, prices could spike to $30–40 or more. This will reduce access to new releases, severing an important cultural connection for Indian Americans.
Streaming platforms like Netflix, Amazon Prime Video, and Hulu are also caught in the crosshairs. The 100% tariff could increase licensing costs for foreign films, leading to higher subscription fees for consumers and potentially reducing the range of international content available to American audiences. As licensing costs rise, many platforms may shift to acquiring only big-budget foreign films with guaranteed commercial success, sidelining smaller independent and regional cinema, a move that would further limit cultural diversity on U.S. screens.
The global implications are sobering. China, which already imposes tight quotas on U.S. films, could retaliate with even stricter measures. The European Union and India are also expected to consider reciprocal tariffs, threatening Hollywood’s access to lucrative foreign markets. In India, Hollywood films account for 15–20% of the country’s box office revenue; retaliatory measures could dramatically reduce U.S. film earnings there. International co-productions, meanwhile, could become financially and legally unviable, stifling cross-border collaborations and creativity.
While Trump’s public statement signaled clear intent, White House officials have since clarified that “no final decisions have been made” on implementation. Commerce Secretary Howard Lutnick simply stated, “We’re on it,” leaving both U.S. and international film industries in a state of suspense.
As global markets brace for impact, one thing is clear: Trump’s movie tariffs are poised to ignite not just an economic clash, but a cultural one, with Bollywood, Hollywood, and millions of film lovers around the world caught in the middle.
ALERT: Trump's 100% Movie Tariff Threatens Indian Cinema:
— Vivek Ranjan Agnihotri (@vivekagnihotri) May 5, 2025
Trump's 100% tariff on movies is a disastrous move. If this absurdity prevails, India's struggling film industry will collapse entirely, with no one to save it.
Indian film leaders must wake up, unite, and fight this… pic.twitter.com/YmTxBWwkJv
