Credit: Ai (Credit: Ai)
Business News: Donald Trump has declared that all films made outside the United States will face a 100% tariff. He said America’s film business has been stolen by other nations. According to him, this step will bring jobs and money back to Hollywood. His post on Truth Social compared the loss to “stealing candy from a baby.” This announcement has shaken the global film industry. Many countries including India are worried about the impact.
The US is one of the largest foreign markets for Indian films. Nearly 35 to 40 percent of overseas box office income comes from America. With new tariffs, ticket prices could double. This would make many Bollywood and regional films unviable in theatres. Smaller and mid-budget films are expected to suffer the most. Their margins are already thin, and new costs may force many to skip US releases.
Trump has appointed veteran actors like Jon Voight, Sylvester Stallone, and Mel Gibson to help rebuild Hollywood. They recently met Trump at Mar-a-Lago in Florida. Reports say they discussed tax incentives and penalties for producers. Voight said Hollywood must not be allowed to collapse like Detroit. He praised Trump for showing love for movies. Supporters believe this is a bold step to protect America’s creative industry.
Reports suggest that Trump’s advisors are proposing a 10 to 20 percent federal tax credit for films shot in the US. This would be in addition to state benefits. But if a producer chooses to film abroad, they may face a penalty. The tariff could be 120 percent of the foreign tax benefit received. This carrot-and-stick model is designed to push filmmakers back to America. It signals a major policy shift for the entertainment sector.
For the 5.2 million Indians living in America, this decision could mean fewer Bollywood releases. Ticket prices will rise sharply if films are released in theatres. Many families who enjoy regional films may struggle to watch them on the big screen. Theatres showing Indian films may reduce screenings or close altogether. This will also impact cultural connection for the diaspora. Many are already turning towards streaming platforms for affordable access.
Experts believe OTT platforms like Netflix, Amazon Prime, and Disney+ Hotstar will see a surge in users. As theatre costs rise, audiences will prefer streaming at home. This could change the way films are consumed in America. Producers may also release directly on digital platforms. But it remains unclear whether tariffs will apply to streaming content. The industry is waiting for more clarity from Trump’s administration.
The White House has not explained how exactly the tariffs will work. Questions remain on whether the tariff is based on production cost or box office income. It is also unclear if joint productions between US and other nations will be exempt. Entertainment companies are calling for details before reacting. For now, Trump’s move has created uncertainty across Hollywood, Bollywood, and world cinema. Everyone is waiting for the next official announcement.
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