U.S. President Donald Trump, who has already shaken the world with his tariff wars, has now made a sensational announcement—he is imposing a 100% tariff on films produced abroad and released in the U.S. This decision is expected to send shockwaves through the Telugu film industry, especially among producers planning to release their films in America.
For example, if a film is bought for $2 million and planned for release in the U.S., an additional $2 million would now need to be paid as tariff, bringing the total to $4 million. A 100% tariff on just a $2 million film would mean a huge financial burden, dashing the hopes of overseas distributors.
Overseas distributors are already facing several challenges in releasing Indian films abroad, and this new decision is likely to make things even more difficult. With OTT and satellite rights having already dipped significantly, producers are struggling to break even. In such a scenario, a 100% tariff on overseas rights is being discussed in distribution circles as a potential crisis for the film industry.
Industry analysts further warn that if Trump goes a step further and imposes the same 100% tariff on films released via American platforms like Netflix, Amazon, and other OTT services, foreign films—including Telugu cinema—could face even greater peril