This is a setback of massive proportions. The US market has always been a backbone for Telugu films, especially big-budget releases. A 100 per cent tariff means ticket prices will skyrocket — T Prasanna Kumar, Secretary, Telugu Film Producers Council

US President Donald Trump has once again sparked global controversy with a new policy that could severely impact Indian cinema. After previously increasing tariffs on several imports from India and hiking visa fees for H1B applicants, Trump has now announced a 100 tariff on all films made outside the United States.

The announcement was made on Trump’s social media platform Truth Social, where he claimed, “Our movie-making business has been stolen from the United States of America by other countries, just like stealing a candy from a baby.” Trump also hinted at imposing similar tariffs on furniture imports. However, it is his latest move targeting the film industry that has drawn sharp criticism worldwide.

The United States is a major overseas market for Indian films, especially Tollywood. With hundreds of crores in box-office revenue coming from American theatres, Tollywood producers see this as a severe blow. Under the new rule, distributors and exhibitors will be forced to pay steep tariffs, which will likely raise ticket prices and reduce audience turnout.

Prominent personalities from Telugu film industry have openly expressed their disappointment and fear over the decision.

Telugu Film Producers Council (TFPC) Secretary T Prasanna Kumar told The Hans India: “This is a setback of massive proportions. The US market has always been a backbone for Telugu films, especially big-budget releases. A 100 per cent tariff means ticket prices will skyrocket, and audiences may not come. This move directly threatens our global reach.”

KL Damodar Prasad, Telugu Film Chamber of Commerce (TFCC) Secretary said, “It’s not just our films; movies from every language will face trouble because of this decision. The only thing we can do is adapt to the situation and move forward. Trump has brought in several policy changes recently, and now it is up to the Centre to take a call. If the tariff gets reduced, it will be a relief, but if not, we have no option but to accept it.”

Indian films already face challenges in distribution abroad. Now, with such tariffs, exhibitors will hesitate to buy rights, and producers will be discouraged from planning big releases in the US. This kind of policy is extremely damaging, he added.

Director and Producer Srinivas Nedunuri expressed frustration, saying, “It feels unfair. Cinema is not just a business - it is culture, emotion, and art. By treating it as a mere import commodity, President Trump is ignoring the cultural bridges films build between nations. This will definitely affect our industry in a big way.”

Trade analysts warn that the profit margins for Indian films in the US could shrink drastically, making overseas releases nearly unviable. “This is not just about business—it’s about cultural exchange,” said analyst Ch S Srinivas. “Trump’s decision could choke the visibility of Indian cinema abroad.”

It remains unclear how and when these tariffs will be implemented, or whether exceptions will be made for certain categories of films. Earlier this year, Trump had hinted at targeting foreign films with tariffs, but the scope was not specified. With this official announcement, Indian producers now brace for a challenging future in one of their most lucrative overseas markets.

As the global film industry awaits further clarity, one thing is certain - Trump’s decision has sent shockwaves across Indian cinema. For Tollywood, the road ahead in the US market looks uncertain and filled with unprecedented hurdles, analysts say.