A recent controversial decision by former U.S. President Donald Trump could significantly impact the global film industry, especially Telugu cinema, which enjoys a strong market in the United States. Trump announced via his Truth Social account that he has instructed the U.S. Department of Commerce and the United States Trade Representative to impose an immediate 100% tariff on all foreign films imported into the country. Expressing concern over the decline of the American film industry, he accused foreign governments of luring U.S. studios abroad with heavy incentives and called the situation a national security threat, claiming foreign films spread anti-American messaging.

This move could double the import costs for Telugu films distributed in the U.S., potentially forcing distributors to increase ticket prices, which might lead to reduced theater attendance and a drop in box office revenue. While big-budget Telugu films have often entered the million-dollar club in the U.S., this tariff may push smaller and mid-budget films out of the market. Industry analysts suggest that only major star-driven projects might survive such financial pressure. However, clarity is still pending on whether this tariff applies solely to theatrical prints or if it extends to digital streaming content as well. It’s also unclear whether this rule targets only foreign production companies or includes American studios shooting films abroad. The exact impact on the Telugu overseas market remains to be seen.