Donald Trump's 100% Tariff on Foreign Films Raises Alarms Across Global Entertainment Hubs, Including India
Claiming that Hollywood is “being devastated” by overseas productions, U.S. President Donald Trump has proposed to impose a 100% tariff on movies made outside the U.S. If implemented, the move could deliver a significant blow to international industries — including Indian cinema.
In a statement that could reshape global film distribution, U.S. President Donald Trump on Sunday said he would direct a 100% tariff on all movies not produced within the United States. Citing national security concerns and a collapsing domestic film industry, Trump claimed that foreign governments are luring away American filmmakers through aggressive incentives — a practice he argued amounts to "messaging and propaganda."
“The Movie Industry in America is DYING a very fast death,” he posted on Truth Social. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away... 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.”
The proposal — if enacted — would have vast implications not only for American studios that routinely film overseas for tax rebates or exotic backdrops, but also for foreign film industries that rely on the U.S. box office. Chief among them: India.
Indian cinema, particularly high-budget films in Hindi, Telugu, Tamil, and Kannada, has seen increasing success in the U.S. market. S.S. Rajamouli’s RRR, for instance, became a breakout hit in 2022, grossing over $14 million in North America. Franchises like KGF and Pushpa have followed with strong overseas numbers, and theatrical releases in the U.S. are now key components of a film’s international strategy.
However, under Trump’s proposal, most Indian films, which are rarely shot in the U.S., would be subject to the tariff. That means a distributor acquiring a film for $1 million would effectively pay $2 million after taxes, severely impacting profit margins. For many, this would render theatrical release unviable.
Unless there are exemptions or grace periods, this threatens to dry up South Asian theatrical releases almost overnight.
Beyond the rhetoric, implementation remains murky. Films are not physical goods but intangible intellectual property. For tariffs to apply, the U.S. government would need to define what qualifies as a “foreign” film — based on shooting location, financing, ownership, or creative control — and determine how to value such an asset for taxation.
Hollywood itself could face collateral damage. High-profile blockbusters such as Mission: Impossible – The Final Reckoning (shot globally), Marvel’s Avengers: Doomsday and Spider-Man: Brand New Day (both filmed in London), and Avatar: Fire and Ash (produced in New Zealand) could be penalised. Studios often choose overseas locations not just for rebates but for storytelling purposes and cost-efficiency.
Trump, speaking with C-SPAN, also took aim at California Governor Gavin Newsom, blaming his administration for allowing the entertainment industry to erode.
The Motion Picture Association has not yet issued a response. Industry leaders in the U.S. and abroad are bracing for clarification on whether existing projects would be grandfathered in and how enforcement might look.
In India, many are hoping the idea won’t progress beyond campaign-season posturing. But if it does, it could jeopardise one of Indian cinema’s fastest-growing markets.
As Trump continues to promote protectionist economic policies, the fate of global film culture may find itself caught in the crossfire.