Trump's 100% movie tariff: Will Indian and global cinema pay the price?

U.S. President Donald Trump has launched a controversial new front in his ongoing trade war, this time targeting international cinema. In a dramatic announcement made via his Truth Social platform, Trump declared he has authorised a 100% tariff on all films produced outside the United States.
"The Movie Industry in America is DYING a very fast death," Trump wrote, arguing that foreign countries are luring filmmakers away from the U.S. through attractive incentives.

“A National Security Threat”?

Blaming international incentives for luring filmmakers abroad, he labelled the trend a “National Security threat” rooted in propaganda. "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood and many other areas within the U.S.A. are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!"

However, the proposal has raised more questions than answers, like the definition of an international film, with modern productions like Billion dollar blockbusters 'Mission: Impossible – The Final Reckoning', 'Avengers: Doomsday', 'Avatar 3', 'Batman', 'Supergirl', shot across multiple countries.
While the practicalities of enforcing such a tariff remain unclear, the move has ignited sharp reactions from members of the Indian film industry, raising serious questions about global film economics, cultural exchange, and the very viability of cross-border storytelling.
Indian Filmmakers React:

Reactions from India—a key international market for U.S. cinema and a rising global power in content production—have ranged from dismissive to deeply concerned.
Veteran producer Mukesh Bhatt was blunt in his critique. “Trump has become a joke,” he said. “It cannot [go through]. It's wrong business." He also questioned the economic rationale behind such a move. "America is the most expensive country on the planet. And it makes no business sense for any producer. Forget Indian producers. Even a Hollywood producer can't afford to shoot in America."
He argued that rather than protecting the American film industry, Trump’s proposed tariff would backfire: “You're not helping, you're destroying Hollywood.”
Bhatt also pointed out the futility of such a move from an Indian perspective, saying, “In India, we make films for the Indian diaspora. To release in America, I would need to shoot in America—which I never will.”

Filmmaker Vivek Agnihotri, known for The Kashmir Files, highlighted how this policy could hurt Indian cinema’s growing influence in non-diaspora American markets. Expressing concerns about the broader implications of such tariffs on Indian cinema's growing global footprint, he said, “Indian films like Baahubali, RRR, and The Kashmir Files had just begun reaching wider audiences in the U.S.—not just the diaspora,” he explained. “With a 100% tariff, a $10 ticket becomes a $20 ticket. Nobody’s going to watch that movie. So it's going to impact us in a very big way.”
Meanwhile, Bhatt disagreed saying, "South films have a major market in the Gulf, a major market in Singapore, a major market in the UK. It's a minimal 1-3%. That doesn't make a damn difference. In fact, he's going to harm Hollywood by putting this kind of conditions on producers."

Superstars must speak up

The director also expressed frustration over the lack of collective industry action, “It’s time film leaders, big studios, and our top stars—many of whom owe their stardom to the NRI market—speak up. If they’re just busy taking airport selfies, I don’t know where this industry is headed.”

OTT: The Loophole or the Future?

As for the booming OTT market, opinions diverge. Bhatt was quick to note that streaming platforms fall outside the realm of theatrical tariffs. “When I watch a movie on OTT, I don't pay GST on a ticket. It's a different model,” he said, suggesting OTT subscription costs wouldn’t be directly impacted.
Agnihotri, however, cautioned against overreliance on streaming. “People may turn to OTT or piracy, but that doesn’t replace the theatrical revenue. That’s how content-rich Indian films were gaining ground internationally.”
Both Agnihotri and Bhatt acknowledged the possible knock-on effects of such a tariff on theatres and streaming platforms. "The only way these multiplexes are running mostly are because of the success of Bollywood movies, and if you'll take that away, multiplexes are also going to die in India," said Agnihotri.

Reciprocal Fallout?

Bhatt reminded that such policies might provoke retaliation. “There’s already a reciprocal understanding between the U.S. and India. If Trump taxes us 100%, we’ll do the same. That could mean 100% tariffs on American films in India, which will hurt U.S. studios more.”
He added, "If US is putting 100% tariff on Indian films, we will also apply 100% on all American Hollywood movies. So we will not have those so-called threats of American movies coming here and getting the benefit from our theatrical window. When you are killing our theatrical window in the US, we will do the same to you."
Agnihotri called on Indian authorities to take a firm diplomatic stance, “I hope the Indian INB Ministry and Commerce Ministry negotiate to ensure this is not applicable to India.”

International pushback

The proposed tariff has triggered speculation about retaliatory measures from other countries. Producer Bhatt questioned, “Why should they not do the same? I’m an Indian producer, so I’m talking for India.”
In a statement, China's National Film Administration said, "The wrong move by the US government to abuse tariffs on China will inevitably further reduce the domestic audience's favourability towards American films," Al Jazeera reported.
It stated, "We will follow market rules, respect the audience's choice, and moderately reduce the number of American films imported."

Caught in the Crossfire

Whether Trump’s threat ever becomes reality remains uncertain. Still, the very proposal has triggered an urgent conversation about cultural diplomacy, trade policy, and the fragile economics of global filmmaking. Producer Mukesh Bhatt summed it up concluding, "What Trump's doing now, is killing Hollywood, which he doesn't realize. That's a tragedy."