Mumbai, May 5: Filmmaker Vipul Amrutlal Shah has offered a nuanced take on former US President Donald Trump’s proposal to impose a 100% tariff on all foreign films entering the United States, expressing that while the move is significant, its impact on the Indian film industry may be limited.
Shah pointed out that the operational specifics of the tariff remain unclear. “Many Indian films are distributed in the U.S. either directly by Indian companies or through appointed American distributors. How the tariff would apply in such cases is still uncertain,” he noted.
Trump recently claimed that the U.S. movie industry is “dying”, citing increased foreign incentives as a threat to domestic filmmaking. He announced via Truth Social that he had authorized the Department of Commerce and U.S. Trade Representative to begin implementing a 100% import tariff on foreign-produced movies, calling the situation a “national security threat.”
Shah acknowledged concerns but emphasized that India’s theatrical business in the U.S. contributes only about 5–7% of a film’s overall box office revenue. “Even if the tariff reduces that figure slightly to 3–4%, it won’t be a huge loss,” he stated. “In fact, if the U.S. imposes tariffs and India reciprocates, Hollywood’s presence in Indian theatres may reduce, which could actually benefit local productions.”
He also referenced the broader India-U.S. trade deal discussions, suggesting that the film industry’s concerns will likely be addressed in upcoming negotiations expected to conclude before October 2025. “Once the deal is finalised, all tariffs, including on films, may be rationalised,” he added.
Another major concern, Shah said, is America’s shrinking production output, noting that investment in theatre productions has dropped by over 26%. “Fewer films are being made, and if foreign films are also blocked due to high tariffs, U.S. theatres could struggle without content,” he cautioned.
While Shah maintains the Indian industry is well-shielded from a major blow, he believes the American theatre owners’ associations will likely lobby against the tariff, urging the government to reconsider or moderate the policy.