What Donald Trump’s 100% Tariff On Foreign Films Could Mean For Indian Entertainment Industry | Explained

US President Donald Trump Donald Trump on Monday stirred up a hornet's nest when he announced a 100% tariff on films produced outside of the United States prior to their release there.

India's $30 billion media and entertainment industry wasn't prepared for this.

Photo Credit: PTI

Several Indian filmmakers expressed concern online, warning that the 100% tariff could drastically reduce US box office revenue for Indian films, especially if ticket prices double and audiences dwindle.

Experts estimate that Indian films earn between ₹800 crore and ₹1,000 crore annually in the US market, reported the Hindustan Times.

Bollywood filmmaker Vivek Agnihotri slammed the move on X, calling it "disastrous" and warning that if enforced, it could severely damage India's already struggling film industry.

Posting on Truth Social, Trump claimed the American film industry was "dying a very fast death" due to financial incentives provided by other countries to US filmmakers.

Vivek Lath, managing director of GoQuest Media Ventures, shared his concerns on LinkedIn, saying, "This is not good," especially as it followed closely after the recently held World Audio Visual & Entertainment Summit (WAVES) in Mumbai, aimed at promoting India as a global content powerhouse.

Lath added that the US contributes around 5-7% of Indian films' box office takings. He noted that American cinema owners, already under pressure, would be unhappy with such a tariff. Moreover, if other countries retaliate, Hollywood could lose a major portion of its international earnings.

Media and entertainment consultant Shrirang Nargund cautioned against drawing conclusions too early, noting that Indian films have a limited presence in the US.

"Out of the 1,600-1,800 films produced in India annually, very few are released in the US, and only a handful such as 'Baahubali', 'Chhaava', or 'RRR' perform well. So, I don't foresee a major impact on our industry," he said.

India, on the other hand, offers a range of incentives to foreign producers, including a streamlined application process.

Projects such as feature films, animation, web series, and commercial TV shows shot in India are eligible for up to 30% of their qualifying production expenditure, provided the intellectual property belongs to a foreign entity.

However, the total rebate is capped at around US$3.5 million per project.

On May 1, during his address at WAVES in Mumbai, Prime Minister Modi urged global investors and content creators to explore India's diverse creative landscape.

According to the March 2025 FICCI-EY report, India's animation, VFX, and post-production sector shrank by 9% in 2024 due to domestic uncertainty and global demand issues.

The segment is expected to recover and grow at a rate of 13% until 2027. However, much now hinges on the finer details of Trump's forthcoming M&E policy.