The process of tariff attack from America continues continuously. In the past, President Donald Trump is eyeing the cinema after announcing high tariffs from pharma products to furniture imports. He has now threatened to impose 100% movie tax. Its direct impact will be seen on the Indian cinema world and according to estimates, there may be a loss of revenue of $ 150 million (more than Rs 1331 crore) every year. Significantly, Trump said on Monday that US will put high tariffs on films made out of America.
Trump’s crooked eye on cinema
The US President posted a post from his account on social media platform Truth social, “I will put 100% tariff on all the films made outside the US.” Trump says that other countries have stolen the business of filmmaking from America, they described it as stealing candy from a child’s hand. He said in his post that tariff is necessary to re -establish the film industry in America. If this happens, then along with all the countries, the Indian cinema world may get a big shock, because America is one of the most attractive and big markets for Indian films.
The 100% movie tax by Donald Trump will be the first American tariff on the border-par distribution of digital entertainment, directly targeting global cinema almost completely digital. This includes streaming giants such as theater digital cinema package to Netflix-Amazon. The special thing is that this is the first attack of its kind, which can also be seen on the fast growing business of Indian cinema in North America.
Crisis on revenue of ₹ 1331 crore
America has always been at the top of the most attractive foreign markets for Indian films, from where not only the Hindi films, but other releases including Tamil, Telugu and Malayalam, earned an estimated 100-150 million dollars (over Rs 880 crore to Rs 1331 crore), but this revenue source is now in danger after the announcement of applying 100% tariffs of Trump.
After this high tariff of Trump is implemented, its direct impact will be seen on the prices of tickets in American theaters and they will become almost expensive. That means it will convert a $ 20 movie Knight to $ 40. According to the reports published on Business Today, especially Indian films, which are largely dependent on the migrant audience, this fast can end the mainstream audience overnight.
Film distributor with Trump’s announcement
Movie tax indications from America have caused panic among the film distributors. A distributor in Mumbai has said that there is going to be bloodshed in this sector. He said that the profit is already low and such a tariff will break the entire model, because most Indian films will not be able to run in America. He said that big blockbuster films like Bahubali-2, Kalki 2898 AD, Pathan and Jawan have grossed crores from American audiences, but after the new 100% tariff, such success stories can become an exception.
The report quoted sources in the cinema industry as saying that if Trump’s policy is implemented, Indian cinema may lose an important international lifeline. Let us know that American film industry is considered the strongest in the world. But in the last few years, the craze of films from China, Korea and other countries including India has increased rapidly in the US and Trump’s tariff attack can cause strong loss to all such countries.
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