By Samannay Biswas

Copyright timesnownews

President Donald Trump’s decision to impose a 100% tariff on all foreign films has sparked alarm across India’s film industry, with experts warning that the move could wipe out nearly 40% of US revenues for Indian cinema. Distributors are bracing for ticket price hikes, lower footfalls, and a possible shift towards direct-to-OTT releases, threatening Bollywood’s most lucrative overseas market, said a report by ET. A Big Blow to Indian Films Abroad The United States is the single largest foreign market for Indian films, contributing 40–60% of overseas box office collections. For example, this year’s biggest Hindi blockbuster Saiyaara collected over $6 million (Rs 53 crore) from North America alone, ranking as the third-biggest Indian film in the region. With tariffs doubling the cost of entry, distributors now fear audiences will abandon theatres. “High ticket prices caused by the tariff will severely cut into revenue shares of Indian distributors,” said Pranab Kapadia, director at overseas distribution firm Moviegoers Entertainment to ET, who has worked with Dharma Productions. “This is not just about economics , it directly affects the cultural exchange that cinema enables.” Ticket Prices Set to Soar To offset the tariffs, distributors may hike US ticket prices to $18–$20 per seat, a sharp jump from the current average of $10–$12. This, industry insiders fear, will drive diaspora families away from theatres, especially with the growing popularity of streaming platforms. “With the short window between theatrical and OTT releases, many viewers will simply wait for streaming,” said a veteran distributor, requesting anonymity. OTT May Benefit, But Mid-Budget Films Suffer While mega-budget tentpole films backed by top stars may still find an audience despite higher ticket costs, mid and small-budget films could vanish from US theatres. Many producers may now prefer to bypass cinemas altogether and go straight to streaming platforms for international releases. “A 100% tariff could wipe out nearly half of Indian films’ US revenues,” said Suniel Wadhwa, cofounder of Karmic Films. “But the deeper worry is the cultural fallout. Cinema is India’s strongest soft power export , and this move threatens to weaken it.” Cultural & Business Shock for Bollywood Indian producers, already navigating shrinking theatrical windows, streaming dominance, and rising costs, now face a new challenge in rethinking their overseas strategy. The large Indian diaspora in the US , around 5.2 million people , has been the backbone of Bollywood’s box-office success abroad. Losing a chunk of that market could force a recalibration of budgets, distribution, and marketing. Shobu Yarlagadda, producer of Baahubali, admitted the industry is still grappling with the sudden announcement: “I am not clear about what the tariff order means in its final form. We will have to study the official guidelines to understand the full impact.” Irony of Protectionism Interestingly, experts point out that Hollywood itself relies on overseas revenues for survival, with nearly 60% of its box office earnings coming from outside the US. Trump’s move, therefore, underscores what they see as an ironic protectionist stance that could hurt not just foreign film industries but also global film trade. For now, producers and distributors are left scrambling to adapt. While big-ticket releases may still survive in the US through aggressive marketing and diaspora loyalty, independent and mid-budget films risk losing visibility altogether. Analysts expect a rise in OTT partnerships, co-productions, and alternative distribution channels as Indian cinema navigates this new landscape. At stake is not just money, but India’s cultural presence in the world’s biggest movie market.