US president Donald Trump has announced a levy of 100% tariff on “any and all movies that are made outside of the US”. He claimed that he was doing so to protect the local film industry as “our movie making business has been stolen from the United States of America, by other countries”, just like stealing “candy from a baby”. This will impact the global entertainment industry including global streaming services like Netflix. The move will also adversely affect Bollywood which exports a number of films to the US.
The implementation of the tariff might not be as simple as it seems because we live in a world where movies are shot across locations, and post-production work could be outsourced to other countries.
According to the Film Producers Guild of India, Indian films gross approximately $100 million to $150 million annually from the US (North America) market.
The 100% tariff will have a direct impact on cinema ticket prices in the US. This will probably adversely affect box-office collections of films which will be screened with 100% tariff.
