US President Donald Trump is turning out to be a nightmare for Indians in his current tenure. After imposing unreasonable tariffs on several imports from India a couple of months ago as part of his trade war, Trump made a shocking decision last week to hike the visa fees for H-1B applicants by $100,000. Even before the shock of that decision subsided, Trump dropped another bomb—this time targeting the film industry.
According to the latest reports, on Monday, Trump announced that the United States will impose a 100% tariff on all movies made outside the country. He shared this news through a post on his ‘Truth Social’ account: “Our movie-making business has been stolen from the United States of America by other countries, just like stealing a candy from a baby.” He also announced that he would impose considerable tariffs on furniture made in other countries.
The decision to impose tariffs on films made outside the USA will have a significant impact on Indian cinema in particular. The USA contributes a major portion of overseas collections for Indian movies, especially from Bollywood and Tollywood. This move could put the theatrical business of Indian films in jeopardy because buyers will need to pay additional tariffs. To recoup their investments, they might raise ticket prices, leaving razor-thin profit margins and making the business unviable.
It is still unclear how the tariffs on the film industry will be implemented. The real impact can only be assessed once they come into force. In May this year, Trump had hinted at imposing tariffs on the film industry but did not specify which categories would be affected.
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