US President Donald Trump has decided to impose a 100% tariff on all movies made outside the United States. He said Hollywood is losing ground because other countries are attracting American filmmakers with big incentives and benefits. This move will be a big blow for Indian cinema, particularly Telugu films, which are reaching new boundaries.
Trump called this a national security issue, saying the US film industry is dying fast. He added that California, once the heart of movie production, has been hit the hardest.
In recent years, film and TV production in Los Angeles has dropped sharply, while other countries have grown stronger by offering tax credits and cash rebates. With global content spending expected to reach nearly $250 billion in 2025, Trump wants the US to reclaim its share.