US President Donald Trump has announced a sweeping new policy imposing a 100% tariff on all films produced outside the United States. The move, effective immediately, is expected to have a significant impact on the global film industry, particularly Indian cinema, which has a large audience base in America through its diaspora communities.
In a social media post, Trump argued that the American movie industry has been “stolen” by other countries, claiming that the decline has been especially severe in California. He criticized state leadership for failing to protect domestic filmmaking and said the tariff is intended to revive Hollywood’s global dominance.
The measure will drastically increase the cost of distributing foreign films in US theaters, potentially reducing their availability to audiences. Industry analysts warn that the policy could discourage international studios from targeting the American market, impacting both box office revenues and cultural exchange.
The Indian film industry, one of the world’s largest, is expected to be among the hardest hit. With thousands of films produced annually across multiple languages, India has maintained a strong presence in the US through theatrical releases and streaming platforms. A 100% tariff would make it significantly more expensive for distributors to release Indian movies in American theaters, potentially limiting access for millions of viewers.
This decision comes shortly after Trump’s administration announced similar tariff measures on pharmaceuticals. Beginning October 2025, imported branded and patented drugs will also face a 100% tariff unless manufacturers establish production plants in the US.
Critics argue that the latest move could trigger retaliatory trade actions from other countries and may also limit the diversity of entertainment options for American audiences. On the other hand, supporters of the policy believe it could encourage more investment in domestic film production and strengthen Hollywood’s economic base.
As the new tariff takes effect, stakeholders in both the American and international film industries are closely watching its long-term implications. The policy may reshape global cinema distribution, creating challenges for foreign filmmakers while giving US studios a potential competitive edge in their home market.