Trump’s 100% Tariffs on Movies: What Prompted this and What it Means for Bollywood Movies in the U.S?

Amid threats for a barrage of tariffs on various issues, US President Donald Trump announced his intention to slap ‘a 100% tariff on any and all movies made outside of the United States’ and ‘substantial tariffs on any country that does not make its furniture in the US’.

Taking to his account on Truth Social, Trump said that the ‘movie making business’ of the US has been stolen by other countries like ‘candy from a baby.’

He wrote, "California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.” 

Soon after, he wrote another post saying, "In order to make North Carolina, which has completely lost its furniture business to China, and other Countries, GREAT again, I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States".

"Details to follow," he added. 

Why Tariff on Movies?

The American film industry, popularly known as Hollywood, has been struggling lately with streaming platforms making viewers less interested to go to movie theatres. Due to the same, there has been a significant drop in box office sales followed by a cut in production.  

Back in 2023 and 2024, there have been strikes by the Writers Guild and the labour unions that also led to massive losses.The estimated loss in 2023 alone was $5 billion, Reuters reported. Additionally, many reports point out that the jobs lost because of the strike are yet to be recovered.

What this Means for Indian Cinema?

The new tariffs on movies from outside the US can be of significant threat to Bollywood’s US earnings and presence. As of what it looks now, these new levies could lead to doubling of ticket prices because the distributors would have to pay extra tariff.

Since the Indian diaspora is widely present in the US, higher pricing could reduce viewership and thereby affect business.

Additionally, a drop in theatrical releases also affects downstream revenues like merchandising, music, promotions, etc. This can further weaken Indian cinema’s cultural reach in U.S.

Why Tariff on Furniture?

Back in August, the US President said that his team has launched an investigation into all furniture coming into the US.

He wrote on social media, "Within the next 50 days, that investigation will be completed, and furniture coming from other countries into the United States will be tariffed at a rate yet to be determined. This will bring the furniture business back to North Carolina, South Carolina, Michigan and states all across the Union.”

Following the same, on Thursday he announced a fresh round of tariffs, focusing on specific items like kitchen cabinets and furniture. These will take effect on October 1. In a post on Truth Social, he said, "We will be imposing a 50% Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025. Additionally, we will be charging a 30% Tariff on Upholstered Furniture.”

According to a Reuters report, jobs for furniture and wood product manufacturing have been cut in half since 2000. Back in 2024, the US imported furniture worth around $25.5 billion, with more than half of those imports coming from Vietnam and China.