US president Donald Trump has announced a levy of 100% tariff on all films produced outside the USA. The news came as a bolt from the blue for the Indian film industry which earns a sizeable part of its revenue from the US market.
Although details are still awaited, the 100% tariff would mean that the shares of Overseas distributors would reduce to half the present level unless admission rates are doubled. Increasing admission rates is expected to adversely affect footfalls in the cinemas.
Trump, on May 4, announced on his Truth Social platform that movies coming into “our country” that are produced in foreign land will be subjected to a 100 per cent tariff. “The American movie industry is dying a very fast death,” Trump added, continuing, “This is a concerted effort by other nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! We want movies made in America again!”
The announcement seems to have two motives — first, to boost American film production, and second, to stop foreign films from taking over the screens in the US and making more money than the country’s home-grown cinema. It has been observed that many US filmmakers have been shooting their films outside the US as it often makes more commercial sense.
It is not yet clear whether the tariff will be imposed on the ticket price, on the distribution price of films or on any other aspect of the movie-selling business which eventually makes it viable for a theatrical run in a country.
