Bollywood, Baahubali, And A 100% Tariff: How Trump's Policy Could Stall Indian Cinema’s US Dream
For an industry that has steadily built a foothold in North America, this sudden tariff threatens not only box office returns but also the larger cultural and strategic momentum.
On May 5, 2025, US President Donald Trump announced a 100% tariff on all foreign-produced films — an aggressive policy that could become a major roadblock for Indian cinema’s long march into American multiplexes. For an industry that has steadily built a foothold in North America, this sudden tariff threatens not only box office returns but also the larger cultural and strategic momentum Indian films have been gaining.
Although, framed as an effort to revive Hollywood and fight “foreign propaganda," the move also risks harming America’s own multicultural vibrancy — and its soft power.
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Let’s be clear: Indian films, particularly those from Bollywood and regional cinemas like Tollywood, don’t compete with Hollywood on scale. But they punch far above their weight when it comes to cultural export. Indian cinema — no longer just a niche offering for diaspora communities in the US — has become a multi-million dollar draw now. Just look at the numbers. From Baahubali 2: The Conclusion grossing $22 million in 2017 to Pathaan ($17.49 million), Pushpa 2: The Rule ($16.25 million), and RRR ($15.34 million), Indian films have consistently cracked the North American market. These aren’t just one-off successes — they represent a sustained appetite for Indian storytelling, spectacle, and star power.
Of the top 10 highest-grossing Indian films in the US and Canada, four are Telugu-language blockbusters (Baahubali 2, RRR, Pushpa 2, Kalki 2898 AD) — evidence of a regional cinema revolution that has successfully globalised its appeal. SS Rajamouli’s grand mythmaking and Sukumar’s stylised grit have done what few imagined a decade ago: they’ve taken Telugu cinema mainstream in North America. Meanwhile, Hindi films powered by superstars like Shah Rukh Khan (Pathaan, Jawan) and Ranbir Kapoor (Animal) continue to dominate diaspora-driven markets in cities like New York, Chicago, and San Francisco.
But a 100% tariff could abruptly sever this success story.
Indian films, especially mid-budget and independent releases, already operate on tight margins in international markets. Doubling import duties may make it economically unfeasible for many titles to secure theatrical releases in the US — leaving screens blank for them. Distributors may have no choice but to scale down releases or skip them entirely in favour of streaming platforms, where visibility, buzz, and box office prestige are harder to replicate.
It’s not just about numbers — it’s about cultural soft power. Over the past decade, Indian cinema has evolved into one of the most visible and accessible ambassadors of Indian identity worldwide. When a Shah Rukh Khan film sells out in Times Square, or audiences cheer “Naatu Naatu" in a Los Angeles theater, it says something: that India’s stories matter globally.
Ironically, some of the very films that have succeeded in the US are also those with crossover appeal. Dangal’s feminist sports narrative, PK’s satire on organised religion, RRR’s anti-colonial heroism — these aren’t just hits among South Asians; they resonate with American values of individualism, justice, and rebellion. They prove that Indian cinema can be more than an export — it can be a bridge.
There’s also a larger trade dimension. If India retaliates with tariffs on Hollywood imports, it risks a spiral. India is one of the most lucrative overseas markets for American films. Avengers: Endgame alone grossed over Rs 400 crore here. But unlike China, which has the clout to impose limits and still attract US filmmakers, India lacks that leverage. A tit-for-tat escalation could backfire, straining broader US-India trade ties.
Of course, loopholes and negotiations might emerge. Co-productions, partial filming in the US, or diplomatic interventions may offer exemptions. But in the short term, uncertainty looms. Strategically, Indian filmmakers must now rethink their global game plan. Markets like China, where Indian films like Dangal and Maharaja have broken records, could help soften the blow. Streaming platforms offer another route, though they come with their own challenges — algorithmic gatekeeping, limited revenue sharing, and lack of clarity on whether the tariff extends to digital distribution.
More worryingly, Trump’s rhetoric — branding foreign films as “national security threats" — undermines the very premise of cultural exchange. It plays to fears, not facts. There’s no evidence that Indian or Korean or French films are propaganda. What they are, instead, is storytelling in a different tongue, a different style, with a different soul. The beauty of cinema is precisely this: its ability to traverse borders and broaden our understanding of each other. In a world where content is king and culture shapes geopolitics, restricting access to screens is akin to shrinking a nation’s voice.
For India, the moment calls for both caution and creativity. The film industry may need policy support — production incentives, global promotion strategies, perhaps even government-backed platforms to amplify regional cinema. Diplomatically, New Delhi must push back against any attempt to reduce cultural dialogue to a zero-sum game.
The Trump administration frames the tariff as a protectionist move to “defend American jobs and creativity." But it could just as easily be read as a cultural retrenchment — a wall built not on borders, but on stories. And when storytelling is stifled, everyone loses.
Indian cinema has fought its way to the international marquee — not with subsidies or state muscle, but with compelling stories, creative risk, and fan loyalty. To punish it now with punitive tariffs is to ask: whose voices are we really afraid of?
Let the audience decide. Not tariffs.
Griha Atul is a broadcast journalist with 19 years of experience and currently anchors prime-time news at CNN News18. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
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