Donald Trump’s return to the White House has resulted in significant policy changes across sectors, and for the first time, he targeted the movie industry. In a bold move to revive the U.S. film industry, Trump directed the Department of Commerce and the U.S. Trade Representative to immediately impose a 100% tariff on films produced in foreign lands (outside of the USA).
On Truth Social, Trump criticized other countries for drawing American studios and filmmakers away from the USA by offering lucrative incentives. Trump wrote, “Hollywood and many other areas in the USA are being devastated. The American movie industry is dying a very fast death. This is a concerted effort by other Nations and, therefore, a National Security threat.”
The announcement has already sent shockwaves through Tollywood, causing panic among distributors. However, it remains uncertain whether Trump’s decision targets only Hollywood movies made outside the USA or extends to non-Hollywood films, too. If it is the latter, then indeed we are in a deep mess since the USA has been one of the biggest contributors to Telugu cinema for a long time.
Telugu cinema has been struggling lately with a lack of footfalls because of a four-week OTT window and HD piracy leaks. If at all, a 100% tariff is imposed on our films, then the USA distributors will have no option but to pass on that burden to the audience by increasing the ticket prices significantly.
If the decision applies to non-Hollywood films, not just Telugu films, even the other industries like Bollywood, Kollywood, and Mollywood that rely on the USA market will be severely impacted. Since there is no clear plan on how this 100% tax policy will be implemented, we will have to wait for further details.
