By News Karnataka Editorial Team
Copyright newskarnataka
In a dramatic escalation of his protectionist policies, former U.S. President and Republican frontrunner Donald Trump on Monday announced a 100% tariff on all movies produced outside the United States, a move that has sent shockwaves across the global entertainment industry.
In a fiery social media post, Trump claimed that the American movie business had been “stolen” by other countries. Comparing the practice to “stealing candy from a baby,” he vowed to “solve this long time, never-ending problem” with immediate punitive measures.
“Our movie making business has been stolen from the United States of America. California, with its weak and incompetent governor, has been particularly hard hit!” Trump declared.
Implementation Hurdles
The announcement has left industry insiders baffled, given the globalised nature of film production. Movies today are routinely made across multiple countries — with VFX outsourced to India, colour correction in Europe, and audio design elsewhere.
“We live in a world where movies are made across locations, across countries. It is very complicated and there are many intangibles,” said George Koshy, CEO of Infamous Coconut, an LA-based production company.
Experts say enforcing tariffs would not only be difficult but could also backfire on Hollywood, which relies heavily on international collaboration and revenues.
Bollywood and Indian Industry Hit Hard
India, home to the world’s largest film industry by volume, stands to lose significantly. The Producers Guild of India estimates that Indian films earn between $100 million and $150 million annually from the U.S. market, primarily through theatrical box office, digital, and satellite rights.
Blockbusters in Hindi and Telugu frequently gross over $10 million each in North America. With tariffs in place, ticket prices for Indian diaspora audiences could double — from the current $20 to $40 — while streaming subscription costs may also surge. Analysts warn this could dampen demand and slash profits for Indian producers.
The impact could extend further. Hollywood studios such as Disney, DreamWorks, and Pixar outsource a vast share of their animation and visual effects (VFX) work to Indian studios. Films like The Lion King, Avengers: Endgame, Dune, Jungle Book, and Interstellar have all relied on Indian post-production.
India’s Animation and VFX sector, valued at $1.3 billion in 2023, is projected to grow to $2.2 billion by 2026 (CII–IBEF report). Trump’s tariff move, coupled with his push to “reshore” production, could threaten that trajectory.
Blowback for Hollywood?
While Trump positioned the tariff as a measure to revive American moviemaking, experts caution that it may instead devastate Hollywood itself. International markets generate over 70% of Hollywood’s box office revenue, amounting to nearly $30 billion in 2024.
If foreign governments retaliate with reciprocal tariffs, the U.S. film industry could lose access to its most lucrative markets in Europe, Asia, and beyond.
Global Fallout Looms
Beyond India, countries like South Korea, France, Japan, and Australia — all major contributors to the global film economy — are expected to feel the shockwaves. Streaming platforms like Netflix, Disney+, and Amazon Prime Video, which distribute international content in the U.S., will also face regulatory and pricing headaches.
As one Mumbai-based producer noted: “Cinema has always been borderless. Trump’s move, if implemented, could be the first step towards making it a trade war.”
