Friday, June 20, 2025

Big Loss to Telugu Cinema After Trump’s Tariff Hike

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American President Donald Trump is now turning his attention to the entertainment industry—particularly targeting foreign films releasing on American soil. The President announced on his social media that, with immediate effect, the process of instituting a 100 percent tariff on any and all movies produced in foreign countries and imported into the USA will begin.

The USA market is one of the biggest for Telugu cinema, as well as for Bollywood and other Indian language films like Malayalam and Tamil. Telugu audiences in the USA eagerly watch films, especially those featuring top stars. For instance, Nani’s recent Telugu film Hit 3 grossed two million US dollars in the US, which is a significant figure for that film. Similarly, the Malayalam film L2: Empuraan, starring Mohanlal, has also performed exceptionally well at the US box office.

Although the President announced this move on social media, it’s still unclear whether the proposed tariff will apply only to foreign films or if Hollywood productions shot outside the United States will also be affected. More clarity is expected in the coming days.

If the US Commerce Department begins to enforce this measure, it will pose major challenges for buyers in the US who acquire Telugu films. Distributors who have purchased films at high prices may be forced to pay a 100 percent tariff to the US government, significantly affecting business viability.

One must wait and see how Indian filmmakers will respond to this new development.

“The Movie Industry in America is DYING a very fast death. 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 USA, are being devastated. This is a concerted effort by other nations and, therefore, a National Security threat,” Trump said on his social media platform, Truth Social. “We want movies made in America, Again!” he added.

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