In a bold move to revive the U.S. film industry, President Donald Trump announced a 100% tariff on films made outside the United States (foreign films). The announcement has already sent shockwaves through Tollywood, causing panic among producers and distributors.
The announcement makes official what Trump had hinted at back in May when he directed the Department of Commerce and the US Trade Representative to start the process of levying heavy tariffs on foreign films.
On Truth Social, Trump wrote, “Our movie-making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby.’ California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long-time, never-ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! President DJT.”
The USA has been the biggest contributor to Indian cinema and Tollywood in particular over the recent years, and Trump’s decision to impose a 100% tariff is surely a big jolt to our films. It is unclear when the new rule will be implemented, but if the rule is put into action, then distributors will have no option but to pass on the burden to the audiences by increasing ticket rates. Let’s see what happens.