Trump Targets Bollywood: Bollywood Caught in the Crossfire with Tariff
Trump’s directive, framed as an effort to revive domestic film production and counter perceived economic threats posed by international incentives, aims to penalize all foreign-made movies entering the US market.
Published: Tuesday,May 06, 2025 07:04 AM GMT-06:00
In a move that has drawn widespread attention across global entertainment industries, former US President Donald Trump has proposed a 100 per cent tariff on films produced outside the United States. The announcement has sparked a ripple effect of concern and analysis among Indian filmmakers and producers, who view the development as significant, though not immediately disruptive.
Trump’s directive, framed as an effort to revive domestic film production and counter perceived economic threats posed by international incentives, aims to penalize all foreign-made movies entering the US market. He has called the exodus of Hollywood production activity a threat to national interests and urged rapid policy enforcement.
For Indian cinema, the statement has triggered a spectrum of responses—measured, pragmatic, and cautious.
Veteran producer Anand Pandit acknowledged the gravity of the announcement but urged patience before drawing firm conclusions. Noting that Indian theatrical markets are already undergoing a transition due to evolving consumer habits, he emphasized the need for detailed information before forecasting any major consequences. According to Pandit, international markets, particularly the United States, do contribute to Indian films’ global reach, but any direct impact would depend on the fine print of the proposed policy.
He also highlighted the role the US has played as a filming destination over the years. From logistical infrastructure to scenic backdrops, American locations have often hosted Indian productions. A shift in policy, he suggested, should ideally involve incentives rather than restrictions if the objective is to attract more filmmakers back to American soil.
Director-producer Vipul Amrutlal Shah offered a structural analysis of the Indian film distribution system in the United States. He explained that Indian companies often handle their own distribution in North America or appoint local partners for the same. The proposed tariff, therefore, could affect these companies directly, although the mechanism of implementation remains unclear.
Shah, however, downplayed the possibility of widespread financial damage. He pointed out that box office revenue from the US comprises a modest share of the total earnings for Indian films—roughly 5 to 7 per cent in most cases. Even in scenarios where a film performs exceptionally well, the proportion rarely exceeds 8 per cent. Thus, while the new policy may reduce returns slightly, it is unlikely to destabilize the domestic industry.
He added that reciprocal policies—should they arise—could potentially benefit Indian cinema by reducing the dominance of major Hollywood releases in the Indian market. In such a scenario, local content may find greater visibility and shelf life in theatres, mitigating some of the economic pressures currently faced by Indian producers and distributors.
On a global scale, filmmaker Shekhar Kapur raised broader concerns. Writing on social media, he questioned whether such tariffs might inadvertently encourage American studios to move operations outside the US, given that a significant portion of their earnings and production expenditures occur overseas. For Hollywood, he noted, international audiences represent the bulk of ticket sales, and cost-effective foreign locations remain integral to production strategies.
In essence, Kapur hinted at the possibility of a counterproductive outcome—where a policy designed to rein in outsourcing might accelerate it instead.
While the finer aspects of the policy are yet to be clarified by US authorities, the Indian film industry is adopting a watch-and-wait approach. Given the interconnected nature of global entertainment economics, industry experts anticipate further dialogue, particularly at the level of trade negotiations between governments.
In the meantime, Indian filmmakers continue to track developments closely. With the international box office still serving as a valuable, though not critical, revenue stream, the priority appears to be staying informed and adaptable.
The coming weeks are expected to offer greater clarity on both the timeline and terms of the tariff enforcement. Until then, industry observers remain focused on the evolving conversation around global content mobility, economic nationalism, and the changing contours of cross-border film consumption.
