Tollywood Faces Setback as US Imposes 100% Tariff on Foreign Films
Tollywood faces uncertainty as the US imposes a 100% tariff on foreign films. Telugu blockbusters like SS Rajamouli’s upcoming projects could see overseas collections in the US decline.
Tollywood blockbusters may face revenue losses as the US imposes a 100% tariff on foreign films, affecting Telugu releases in North America.
With the Dasara spells holiday-giving season coming on, Tollywood is set for one of its busiest release calendars ever. There may be a dampener to celebrations once it followed the US President Donald Trump announcing a 100% tariff on foreign films, thus spooking the Telugu film industry. Namely, for a long time, the US has been the single-largest overseas market for Telugu cinema, thus rendering it frightening particularly for producers and distributors alike.
🎬 Impact on Telugu Box Office
Watching films during Dasara and Sankranti is a cultural tradition in Telugu households. This year, nearly 20 major films are slated for release, with projected box office stakes around ₹6,000 crore. The new tariff threatens overseas earnings, as blockbuster Telugu films often premiere on hundreds of screens across the United States.
Tollywood director SS Rajamouli is gearing up for his next project starring Mahesh Babu, made with a massive ₹1,200 crore budget. The team plans to release the film in over 1,000 screens worldwide, including North America, in 2026.
💰 Significance of the US Market
Previous hits underscore the importance of the US diaspora audience:
- Prabhas’s Kalki 2898 AD earned $18.5 million in the US.
- Baahubali 2 remains the top-grossing Telugu film overseas at $22 million.
- Recent blockbusters like RRR, Pushpa 2, and Animal collected between $15–19 million each.
- Currently, Telugu films release on 300–400 screens in the US, comparable to Hindi films. At times, overseas collections even surpass domestic earnings.
Film critic Prasen Bellamkonda told DH, “The tariff in the US would definitely impact Tollywood returns. Around 20 movies scheduled in the next 2–3 months have budgets of ₹300 crore each. The US market is crucial. One ticket price in USD equals about ten tickets in INR.”
📊 Financial Stakes for Producers and Distributors
According to the FICCI-Frames and KPMG Indian Media and Entertainment Industry Report, the US accounts for 85% of overseas revenues for Telugu films, contributing 5–10% of their overall box office. The Producers Guild of India estimates the Indian diaspora in the US spends nearly $100 million annually on Indian-language films, including Telugu, Hindi, Tamil, Malayalam, Punjabi, and Bengali productions.
However, rising ticket prices pose a challenge. US tickets for big Telugu releases already cost $15–20, with premiere shows even higher. An NRI distributor from New Jersey told DH, “If tariffs push ticket prices to $30–$40, audiences may stay away, affecting both producers and distributors.”
The Tollywood industry now faces uncertainty as filmmakers and distributors explore strategies to mitigate the impact of 100% tariffs, while hoping for continued support from the lucrative overseas market.
