Highlights:
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President Trump’s 100% tariff on foreign films is expected to raise ticket prices for Bollywood films in the US.
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Distributors warn that higher prices may reduce audience turnout and lower overall box-office revenue.
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Hindi films earn 40–60% of their international revenue from North America; US market is crucial for Indian cinema.
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Short theater-to-streaming windows may push audiences to wait for OTT releases instead of visiting cinemas.
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Mid-sized and smaller Bollywood films could bypass theaters entirely and release directly on streaming platforms.
Bollywood films may become more expensive for audiences in the United States following President Donald Trump’s decision to impose a 100 percent tariff on all films produced outside the US. Experts warn that the move could significantly affect Indian films’ revenue, alter distribution strategies, and influence audience behavior in North America.
Impact on Bollywood Films’ Revenue in the US
The new tariff could directly impact the box office performance of Bollywood films in the US. Industry experts say that distributors may be forced to raise ticket prices to offset the costs, which could reduce audience turnout.
“To the best of my knowledge, Hollywood derives 60% of its revenues from the rest of the world. This shows the irony of the situation. I think this tariff is likely to impact the last mile consumer a lot,” said Pranab Kapadia, director at overseas distribution firm Moviegoers Entertainment.
Kapadia, who has overseen the overseas distribution of films from Karan Johar’s Dharma Productions, highlighted the importance of the US market for Hindi films. On average, 40–60 percent of their international box office revenue comes from North America. This year’s biggest Hindi blockbuster, Saiyaara, earned over $6 million in the US, making it the third-highest-grossing Indian film in the region.
Rising Ticket Prices Could Affect Audience Footfall
Distributors warn that higher costs will directly reduce their revenue share. “The impact of tariff is high ticket prices, which will lower the revenue share of distributors of Indian films, thereby hurting the overall box office potential of Indian films,” Kapadia said.
The higher ticket prices may force audiences to reconsider attending theaters. For many Indian-American families, cinema outings may become less affordable, especially for mid-sized and smaller films that rely on ticket sales rather than streaming revenue.
Short Theater Window Adds Pressure
Another challenge for Bollywood films is the brief period they typically spend in theaters before being released on streaming platforms. This short window could encourage audiences to wait for OTT releases rather than paying higher ticket prices.
“Today, there is such a short window between a film that gets released in theaters and then its showcasing on streaming platforms. In this context, a tariff of 100% makes it even more challenging for distributors to bring footfalls in theaters, especially when they must resort to hiking ticket prices to compensate for the tariff,” said a veteran distributor on condition of anonymity.
Smaller Films May Move to Streaming Platforms
Some mid-sized and smaller Bollywood films may skip theatrical releases entirely in the US. Producers could choose to release these films directly on streaming platforms, avoiding the cost pressures imposed by the tariff.
“A 100% tariff could wipe out 40% of Indian films’ US revenues, but the deeper worry is the audience fallout. With ticket prices soaring to $20, many diaspora families may abandon theaters,” said Suniel Wadhwa, cofounder and director of Karmic Films. “This is not just a tariff. It is a cultural barrier. Cinema is India’s strongest soft power export to the world,” he added.
US Market Critical for Bollywood Films
The US market is a vital source of revenue for Bollywood films due to the large Indian-American population. According to the Pew Research Center, about 5.2 million Indians live in the US, representing a significant audience for both Bollywood and regional Indian films.
However, some producers remain uncertain about how the tariff will be implemented. “I am not clear about what the tariff announcement means. I will have to see the final order to understand the future implications of this tariff,” said Shobu Yarlagadda, producer of the hit Telugu films Baahubali and Baahubali 2.
Industry Outlook
Industry experts caution that the new tariff may not only reduce box-office collections but also force producers to rethink how they make, distribute, and market Bollywood films. Big-budget projects may be particularly affected, as higher costs and potential audience drop-off could impact profitability.
Bollywood films have long been considered one of India’s strongest soft power exports, and changes in international tariff policy could have lasting consequences for how Indian cinema reaches global audiences.
