• Trump plans to impose a 100% tariff on all foreign-made movies, claiming the US film industry has been "stolen."
• The new tariffs might complicate Hollywood's business model, increasing costs and lowering revenues from global projects.
• India's film industry could suffer greatly, with 40-60% of overseas earnings tied to the US market.

US President Donald Trump announced on Monday that he would levy a 100% tariff on all films made outside the United States, arguing that the country's film industry has been "stolen" by foreign competitors. Trump claimed this tariff is intended to "solve this long time, never-ending problem," particularly targeting California and its governor for the alleged decline of the local industry. The announcement raises significant questions about enforcement and legal authority regarding what constitutes a foreign film, as many Hollywood projects are produced internationally, with various aspects managed in different countries, according to India Times, South China Morning Post, and Channel News Asia.

The move poses a direct threat to Hollywood's global business model, as studios increasingly rely on international box office revenues and co-productions. Trump's rhetoric highlights a shift towards protectionist policies that could overhaul the film industry's financial framework, leaving studios uncertain about the impact on their operations. Industry experts express skepticism regarding the feasibility of applying such tariffs, noting the complicated nature of film production today, which often spans multiple countries for various stages of creation, as pointed out by Anadolu Agency and BBC.

The Indian film industry, which relies heavily on the US market—accounting for a significant portion of overseas earnings—could be severely impacted by these tariffs. Experts predict that Indian films might see a reduction of up to 40% in US revenues, as audiences may be deterred by increased ticket prices resulting from the tariffs. With the profitability of Indian films tied closely to their US box office performance, some distributors fear that mid- and small-budget films may even bypass theatrical releases in favor of direct-to-OTT options due to the financial strain, according to India Times and South China Morning Post.

As the administration proceeds with this plan, multiple analysts stress that the overarching implications of such tariffs extend beyond mere economics, potentially eroding India's cultural export positions and reducing its soft power in global narratives. The strategy could inadvertently push US audiences back toward homegrown Hollywood productions while limiting their exposure to stories from the Indian diaspora, which constitutes a vibrant segment of the film market in the US, according to Al Jazeera and Dawn.