Trump’s 100% tariff on foreign films may hit Tollywood hardest

HYDERABAD: Telugu cinema, which has built a strong overseas market in the United States, is set to take a direct hit from US President Donald Trump’s decision to impose a 100% tariff on films produced outside America.

Telugus form one of the largest Indian immigrant groups in the US, and big-ticket Telugu films have increasingly relied on overseas collections to recover costs. Producers estimate that nearly 10–15% of their budgets come from North America.

Film producer Lagadapati Sridhar said, “Telugu movies have been steadily expanding their fan base across North America. Big releases have contributed nearly 10–15% of their budgets from the United States. But Trump’s tariff could nearly destroy this model.”

Ticket prices may double for diaspora audiences

Telugu film tickets in the US are already priced higher than Hollywood movies. While a Hollywood ticket costs $12–18, Telugu distributors charge $25–40, banking on star-driven demand.

Sridhar warned that the new tariff could double prices. “If a ticket, which was recently priced at $25, suddenly costs $50 after Trump’s tariff, the Telugu movie audience could be forced to cut down on their theatre visits, especially when many of them already travel three to four hours to reach a screening,” he said.

Wider implications for Indian cinema

Trump announced the tariff on his Truth Social platform, saying, “Our movie-making business has been stolen from the United States of America, by other countries, just like stealing ‘candy from a baby’... Therefore, I will be imposing a 100% tariff on any and all movies that are made outside of the United States.”

The move is believed to be targeted at Hollywood producers who increasingly film in Canada, Australia and the UK. However, it could have far-reaching consequences for Indian cinema as well, particularly in the US, which has a 5.4-million-strong Indian diaspora.

Hindi films enjoy a dispersed market across Canada, Australia, the UK and parts of Africa, but Tollywood, which depends heavily on the US, stands exposed to the tariff shock.