Telugu Film Industry in the U.S: Donald Trump’s sudden 100% tax on foreign films could seriously damage Telugu cinema’s business in the U.S.

Telugu Film Industry in the U.S:

Former U.S. President Donald Trump has returned to power and brought with him a major policy change that’s sending shockwaves through the global film industry. Trump recently ordered a 100% tariff on all foreign films entering the U.S. creating panic among Indian film distributors especially those dealing with Telugu movies.

Until now Telugu films faced no import tax when screened in the U.S. With the new rule, if a U.S. distributor buys a Telugu film for \$1 million, they must now pay another \$1 million in tax. This doubles the cost and makes film distribution financially risky. The suddenness of the decision has added to the confusion. There is no clear information about whether the tax applies to movies already bought and scheduled for release.

This decision could disrupt the Telugu film market in the U.S., which has been a vital revenue source for Indian filmmakers. Distributors are now unsure about ongoing deals, and many may pause purchases. A film once bought for ₹1 crore would now require another ₹1 crore just to pay the tax, making it unaffordable for many.

There’s also concern about whether the tax will apply to streaming platforms like Netflix and Amazon Prime Video. If so, OTT platforms might avoid buying Telugu content, causing further loss to Indian producers.

Industry insiders hope that Hollywood studios, who also rely on global markets, will pressure Trump to change his decision. If other countries like India and China respond with similar tariffs on American films, it could hurt Hollywood too.

For now, the Telugu film industry is in a state of panic. With no clarity and no exemptions, this tax could crush the overseas market for Indian films unless there’s a reversal soon.

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