Indian Producers’ Associations Warn of Box Office Bloodbath After Donald Trump’s 100% Tariff Bombshell

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American-based Indian film producer associations are raising concerns over President Donald Trump’s recent plan to impose a 100% tax on movies made outside the U.S., which could potentially harm the $100 million box office success that Indian films currently enjoy in the United States.

Shibashish Sarkar, head of the Indian Producers Guild, advises caution before making definitive statements about the situation. “At this point, it’s premature to comment. The global film industries and their stakeholders are still trying to understand the intent behind President Trump’s statement, and what impact it might have on Hollywood. Moreover, considering his past announcements on tariffs, things can change before the policy is actually implemented,” Sarkar explains to EbMaster.

Should the proposed plan be enacted, Sarkar anticipates a swift effect on cinema distribution. He notes that Indian films generate approximately $100 million at U.S. box offices. If this tariff becomes reality, exhibitors might raise ticket prices significantly, making it less affordable for moviegoers and potentially leading to a significant drop in attendance.

As a devoted cinephile, I’m thrilled to share that Indian films have been truly shining stars at the North American box office lately. Leading the pack is “Baahubali 2: The Conclusion,” which raked in an impressive $22 million. Close behind, we have “Kalki 2898 AD” with a gross of $18.5 million, followed by “Pathaan” at $17.4 million, the intriguing “RRR” at $15.3 million, “Jawan” and “Pushpa 2: The Rule,” each garnering $15.2 million and $15.08 million respectively, and lastly, “Animal” with a strong performance of $15.01 million. It’s an exciting time for Indian cinema!

In a different situation, Indian manufacturers could face similar difficulties. If the exhibitors decide to cover the increased costs themselves, they may transfer that financial burden onto the producers, significantly reducing the producers’ profit share as well. Regardless of the choice made by the exhibitors, the impact on the Indian producer’s share from a theatrical standpoint will be substantial. This is according to Sarkar’s statement.

The impact of this situation won’t just affect cinematic premieres; it will also reach digital platforms. This includes deals for Indian productions on digital or pay TV networks worldwide. These could be rights for post-theatrical releases or direct-to-digital films, as Sarkar points out. Furthermore, any income generated from Indian content in the U.S. might fall under the tariff regulation.

Moreover, the government highlights possible repercussions for American film productions shooting in India, indicating they may encounter import taxes upon returning the content to the U.S. for distribution.

Abhay Sinha, head of the Indian Motion Pictures Producers’ Association (IMPPA), speaking to EbMaster, expresses concern about mutual harm. He states that the sanctions placed on foreign films by the Trump administration could significantly impact the distribution of Indian movies in the U.S., as American exhibition chains also depend on Indian content to stay afloat.

Indian movie theaters frequently screen popular Hollywood films, which contribute around 10% to the yearly box office revenue of about $2 billion. Among the highest-grossing Hollywood movies in India are “Avatar: The Way of Water” earning $59.5 million, followed by “Avengers: Endgame” with $62.6 million and “Avengers: Infinity War” raking in $43.5 million.

The groups representing film producers and distributors are discussing unified action in response, with the intention of addressing the problem by initially consulting with the government. As stated by Sinha, both IMPPA (Indian Motion Picture Producers’ Association) and FFI (Film Federation of India) will collaborate with the government to express their collective stance on this matter.

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2025-05-06 14:01