[ad_1]
US President Donald Trump’s trade war has hit the film industry. In a post on Truth Social, Trump said he is authorising the Department of Commerce and the United States Trade Representative to immediately implement a 100 per cent tariff on “any and all movies coming into the country that are produced in foreign lands” while stating that Hollywood movies should be made in America.
The announcement created a lot of confusion about how the tariff will be implemented and the impact it will have in terms of theatrical releases as well as streaming content.
The Indian film industry is not certain whether Trump’s tariffs are targeted at films produced outside of the US or those that are being screened in the US.
impact unclear
Nishith Varshneya, Head, International Business and India, Digital Syndication, Shemaroo Entertainment Ltd, said: “There may be changes in how Indian films are distributed or accessed, but it’s also possible that new opportunities and models of engagement will emerge in response.”
When it comes to the theatrical releases, the US, the UK, Canada, Gulf region, Australia and New Zealand are among the top five international markets for Indian movies. Of these, the US market share is estimated at 30-40 per cent thanks to the large Indian diaspora.
Per FICCI-EY report, 359 Indian films were released across 38 countries in 2024 generatinga gross box office collection of ₹2,000 crore, up 5 per cent over 2023.
rising release cost
Suniel Wadhwa, Co-Founder and Director, Karmic Films, said: “This could drastically increase the cost of releasing Indian films in the US. This could also potentially discourage distributors, who acquire Indian films for release in the US on a ‘minimum guarantee’ basis.”
Thus far, imported films have been primarily regulated through content certification requirements and do not involve substantial financial duties. Wadhwa noted that the newly proposed tariff represents a significant departure from previous US trade practices concerning the film industry.
Shailesh Kapoor, Founder and CEO, Ormax Media, noted that this is likely to impact big-ticket Hindi, Tamil and Telugu movies. According to data available with Box Office India, SRK starrer Pathaan is said to be the biggest Indian grosser in the US and Canada territory and raked in $17.49 million, followed by Jawan and Animal with collections of over $14 million each. Telugu blockbusters such as Baahubali 2, Pushpa 2, and Devara 1 have also done huge business in the North American markets.
D Suresh Babu, MD, Suresh Productions, said,“We don’t know where exactly the levy will be imposed. Is it on the Entertainment Tax? Or, will it be only theatrical releases or on all media (OTT platforms)?” R Raja, MD, TrendLoud Digital India, a Chennai-based digital media company, said, “Nearly 20-25 per cent of the total revenue of the Tamil mainstream films come from the US. It’ll be higher for bigger films especially the ones from Tamil and Telugu.”
( With inputs from K V Kurmanath in Hyderabad and TE Raja Simhan in Chennai)
Published on May 5, 2025
[ad_2]
Source link
