May 5, 2025: President Donald Trump‘s recent announcement of a 100% tariff on foreign-produced films has sent shockwaves through the global film industry. While Hollywood grapples with the implications, the move poses a significant threat to the Telugu film industry, which has cultivated a substantial audience in the United States.
Posting on his Truth Social platform, Trump criticised other nations for offering lucrative incentives to lure American studios and filmmakers abroad and described the situation as both an economic and national security threat.
Donald Trump Tariff on Non-US Films, a major setback for Indian Films
The United States has been a lucrative market for Telugu films, contributing approximately 85% of their overseas revenue. Films like Baahubali and RRR have not only achieved critical acclaim but also commercial success, with Baahubali 2 grossing over $20 million in North America alone . However, the new tariff threatens to disrupt this revenue stream, potentially leading to reduced screen allocations and increased distribution costs.
“The American movie industry is dying a very fast death,” Donald Trump stated. “This is a concerted effort by other Nations and, therefore, a National Security threat,” Trump said in a post on Truth Social. “It is, in addition to everything else, messaging and propaganda!”
Distributors have long faced challenges in the US market, including high ticket prices and competition for screen space with Hollywood and Bollywood releases . The introduction of the tariff could exacerbate these issues, making it more difficult for Telugu films to secure prime screening slots and maintain their audience base.
Trump’s US Tariff on Foreign Films: A Major Setback for Telugu Cinema’s US Market
The rise of streaming platforms like Amazon Prime and Netflix has further complicated the landscape. Many Telugu films are now available on these platforms shortly after their theatrical release, leading to a decline in box office earnings . The tariff could discourage these platforms from acquiring Telugu films, limiting their availability to audiences in the US.
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Industry experts suggest that Telugu film producers consider establishing direct distribution channels in the US to mitigate the impact of the tariff. By bypassing intermediaries, producers can ensure more control over their films’ release and revenue generation. Additionally, fostering partnerships with US-based streaming platforms could provide alternative avenues for reaching audiences .
Donald Trump stressed the need to return to domestic film production, and said, “We want movies made in America again!”
He added that the new tariffs are intended to level the playing field and encourage studios to keep their operations on US soil.
While the full extent of the tariff’s impact remains to be seen, the Telugu film industry must adapt to the changing landscape. By exploring new distribution strategies and strengthening relationships with audiences, Telugu cinema can navigate the challenges posed by the US market’s evolving dynamics.