U.S. President Donald Trump has proposed a drastic 100% tariff on films made outside of the U.S.A., The films of Indian, Japanese, Korean, and European cinema will face 100% tariff on films if they enters in the American market. The move, framed as a measure to protect Hollywood’s declining revenue, has sparked backlash from global filmmakers who argue it could cripple international collaborations and cultural exchange.
Key points
Why Donald Trump imposes 100% tariff on films?
Trump claims the U.S. film industry is “dying” due to production outsourcing and competition from foreign markets. In a statement, he accused other countries of incentivizing filmmakers to shoot outside America, leading to job losses domestically. “Hollywood and many other areas within the U.S. are being devastated. This is a concerted effort by foreign nations and a national security threat,” Trump declared.
His solution? A blanket 100% tariff on all films produced outside the U.S., including Bollywood, anime, and K-dramas. The policy aims to force studios to prioritize American-made content, but critics call it economically shortsighted and culturally isolating.
Bollywood and regional cinema at risk
Indian filmmakers, particularly those reliant on the U.S. diaspora market, fear severe financial repercussions. Movies like RRR and Pathaan have earned $10–15 million (₹100–150 crore) in the U.S., a revenue stream that could shrink drastically if ticket prices double due to tariffs.
Vivek Agnihotri, director of The Kashmir Files, labeled the idea “absurd,” warning that India’s struggling film industry “could collapse” under such pressure. While Bollywood’s global earnings are modest (₹1–2 billion annually compared to Japan’s ¥28 billion in 2023), the U.S. remains a key market for diaspora-driven profits.
Global Fallout: Japan, Korea, and Europe
The proposal has sent shockwaves beyond India. Japan’s anime industry, which dominates global streaming platforms, and South Korea’s booming K-content sector (e.g., Squid Game, BTS-related films) rely heavily on U.S. audiences. European arthouse cinema, already niche, could face exclusion from American theaters.
Trump’s focus on China which recently announced plans to limit Hollywood films has also drawn scrutiny. Instead of targeting China alone (whose films rarely compete globally), the tariff penalizes all foreign cinema. “This makes no sense. China is reducing Hollywood’s earnings, but Trump is punishing everyone else,” noted an industry analyst.
Hollywood’s Paradox: Global Dominance vs. “Decline”
Trump’s claim that Hollywood is “failing” contradicts its global performance. Blockbusters like Avatar: The Way of Water (₹370 crore in India) and Avengers: Endgame (₹370 crore+) thrive internationally. In China, Godzilla x Kong earned $120 million (₹1,000 crore)—ten times its Indian revenue.
However, Hollywood’s reliance on overseas shoots (e.g., Canada, Australia) to cut costs has irked Trump. His tariff seeks to repatriate productions, but experts argue it ignores the industry’s interdependent nature.
Potential consequences
- Higher Costs for Audiences: U.S. distributors may pass tariff costs to viewers, making foreign films prohibitively expensive for diaspora communities.
- Retaliation: India and others could impose reciprocal tariffs on Hollywood films, which earn ₹100–300 crore per release locally.
- Streaming Uncertainty: It’s unclear if tariffs would apply to platforms like Netflix, where films like RRR found massive audiences post-theatrical runs.
Industry Reactions
- Indian Producers: Call the move “senseless,” noting Bollywood lacks the global appeal to threaten Hollywood.
- Japanese Studios: Fear losing a lucrative market; anime films like Demon Slayer have earned millions in the U.S.
- Trade Experts: Doubt the policy’s longevity, citing Trump’s history of policy reversals.
The Bigger Picture
The proposal reflects growing protectionism in global trade but risks alienating cultural markets. As filmmaker Shekhar Kapur tweeted, “Art transcends borders. Tariffs on creativity benefit no one.”
With Trump’s potential return to the White House, the film world braces for a clash between economic nationalism and the borderless appeal of cinema.