May 05, 2025: Acclaimed filmmaker Mahesh Bhatt has voiced serious concerns over US President Donald Trump’s recent decision to impose a 100 per cent tariff on all foreign films entering the United States, warning that the Telugu film industry might bear the brunt more than Hindi cinema.
The veteran director-producer explained that while both Hindi and Telugu films will feel the impact, the Telugu industry—due to its substantial audience base in the United States—stands to lose more.
“This was bound to happen. But it’s crucial to evaluate the implications—will it impact streaming content too? From what I understand, Telugu films enjoy significant consumption in the US. In comparison, Hindi cinema has a broader international footprint. So yes, the impact is inevitable,” Bhatt said.
He added that doubling of distributor costs—from ₹100 to ₹200—would naturally slow down the flow of Indian films into the US market.
Backing Trump’s rationale, Bhatt acknowledged that the American president’s move was rooted in protecting domestic interests. “Hollywood, once the Mecca of entertainment, is reportedly turning into a ghost town as productions shift to cheaper, incentivized foreign locations. From their perspective, the move is understandable,” Bhatt remarked.
However, he also questioned whether the 100 per cent tariff was a fixed measure or an opening for future negotiations, hinting that the situation remains fluid.
Expressing concern for Indian cinema’s financial model, Bhatt pointed out the critical role of overseas revenue. “Large-budget Indian films heavily depend on income from abroad, particularly the US. While we’re fortunate to have strong domestic demand, the loss of US revenue will cause major disruptions,” he said.
President Trump announced that he has instructed the Department of Commerce and the US Trade Representative to begin the process of implementing the tariffs immediately. He described the shift of American productions overseas as a “national threat,” claiming the US movie industry is “dying a fast death.”