Donald Trump’s announcement of a 100% tariff on foreign-made films has sent shockwaves across the global film industry, with Indian cinema — particularly Telugu films — standing to lose the most.
Indian movies command a significant share of the US box office, thanks largely to the massive diaspora audience.
Among them, Telugu cinema (Tollywood) has emerged as the top performer, outpacing Hindi (Bollywood) films, with Tamil, Malayalam, Punjabi, and other regional-language releases following behind.
For both Bollywood and Tollywood, the US is not just another market — it is a lifeline. Overseas revenue from North America often determines a film’s profitability. But for the Indian diaspora, the issue runs deeper than numbers.
These films are a cultural bridge, helping families stay connected to their roots, language, and traditions.
Box Office at Risk
Recent years have seen Indian blockbusters making big money in the US. Baahubali 2 collected â¹195 crore (USD 22 million), while films like Kalki 2898 AD, Pathaan, RRR, Pushpa 2, Jawan, and Animal each earned between â¹133 crore (USD 15 million) and â¹168 crore (USD 19 million).
But with Trump’s proposed tariff, ticket prices could skyrocket. NRIs already pay $25–$30 for premiere shows of their favorite stars; that could double to $50–$60 per ticket.
What was once an occasional family outing will suddenly feel like an extravagant luxury. Hardcore fans may still make the effort, but for most families, the cost will feel like daylight robbery.
Industry Fallout
The impact on producers and distributors could be just as severe. Overseas theatrical rights are a critical revenue stream for Indian films.
With inflated ticket prices discouraging audiences, distributors may think twice before investing, leaving producers in a precarious position. Thin margins, coupled with the risk of alienating audiences, create an uncertain future.
A Cultural Setback
For millions of NRIs, Indian films are more than entertainment — they are a lifeline to home. Forcing them to pay such inflated prices risks weakening that bond.
The move feels less like sound economic policy and more like political posturing, with the diaspora caught in the crossfire.
What’s Next?
The dust is yet to settle, and experts believe the long-term impact may be less dramatic than initial fears suggest. Still, Trump’s tariff threat has cast a shadow over release strategies, ticket pricing, and overseas distribution models.
For now, the Telugu film industry, which has been thriving in North America, faces the toughest questions about its future abroad.
Usha Chowdhary