US tariff threat: Telugu film industry may lose Rs 2,200 crore; industry fears higher ticket prices, lower footfall

VIJAYAWADA: The Telugu film industry is on edge after US President Donald Trump proposed a 100% tariff on foreign films, a move that could shake the very foundations of Indian cinema's overseas market. With North America-especially the United States-serving as a crucial hub for Telugu films, producers fear that the tariff will drastically cut into revenues.

Currently, some blockbuster Telugu films earn nearly 25 percent of their total box office collections from theatrical screenings in the US. Smaller films with strong content also rely heavily on overseas markets, where Telugu-speaking audiences provide a loyal fan base. However, if ticket prices double from $100 to $200, industry experts say audiences will likely turn away.


Veteran producer Nandiwada Seshu Lakshmi Narayana (Nandiwada Nani) warned, "The number of people going to theatres in India has already decreased after Covid. In the US, audiences pay for good content, but if prices rise further, NRIs will stop watching films in theatres. This is a serious blow."

Echoing this concern, producer-director Madhura Sreedhar Reddy, said: "A 100% tariff on foreign films means destroying small-budget cinema. People will not pay double ticket prices for smaller films. This will only increase piracy and push viewers to wait for OTT releases."

Sreedhar Reddy added that Trump's decision will harm the theatre ecosystem in the USA. "Foreign movies occupy a major chunk in theatrical screenings in the USA. Imposing tariffs on them will discourage movie lovers from watching films at the theatre. This will damage the theatre and movie distribution ecosystem there," he added.

Industry stakeholders worry that while Hollywood productions may be exempt from tariff, Indian, Korean, and Chinese films could suffer badly. Producers say this decision could trigger long-term damage to Telugu cinema's overseas presence and cripple its global reach.