Indian Producers' Associations Warn of Box Office Bloodbath After Donald Trump's 100% Tariff Bombshell
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Indian producers associations are sounding the alarm over President Donald Trump's recent proposal to implement a 100% tariff on foreign-produced films entering the U.S. market, a move that threatens the $100 million theatrical business that Indian cinema currently enjoys in America.
Shibashish Sarkar, president of the Producers Guild of India, cautions that it's still early to fully assess the situation. 'It is a little early to comment as global film industries and stakeholders are still processing what is the objective of the statement by President Trump, and what exactly it will solve for Hollywood. Also as we see from his other announcements on tariffs, things change till it's implemented,' Sarkar tells Variety.
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If implemented, Sarkar believes the immediate impact would be on theatrical distribution. 'Indian films do about $100 million dollar +/- at the gross box office level in the U.S. If this tariff gets implemented, either the exhibitors will increase the ticket prices and make it expensive for the consumers, because of which even the footfalls will come down dramatically,' he explains.
Indian films have been making significant strides at the North American box office. Among the top performers, 'Baahubali 2: The Conclusion' leads with a gross of $22 million, followed by 'Kalki 2898 AD' at $18.5 million, 'Pathaan' at $17.4 million, 'RRR' at $15.3 million, 'Jawan' at $15.2 million, 'Pushpa 2: The Rule' at $15.08 million, and 'Animal' at $15.01 million.
The alternative scenario could be equally problematic for Indian producers. 'If the exhibitors want to absorb the price, then they will pass on that loss to the producers, so the producers share will also come down dramatically. Either way, there will be an impact on the Indian producer's share from a theatrical point of view,' Sarkar says.
The ripple effects would extend beyond theatrical releases to digital platforms as well. 'Also, digital or pay TV deals that Indian producers do for global rights will be impacted. That may be post theatrical rights or direct to digital films,' Sarkar notes, adding that any revenue generated by Indian content in the U.S. would likely be subject to the tariff.
Sarkar also points out potential consequences for Hollywood productions shooting in India, suggesting they would face tariffs when bringing content back to the U.S. for release.
Abhay Sinha, president of the Indian Motion Pictures Producers' Association (IMPPA), which represents 25,000 Indian producers and distributors, also warns of mutual damage. 'The sanctions imposed on foreign films by the President Trump administration are going to have far reaching consequences on Indian films releasing in the U.S.,' Sinha tells Variety, noting that U.S. exhibition chains also rely on Indian content for survival.
Hollywood films have a significant presence in the Indian market, accounting for approximately 10% of the annual $2 billion box office. Top-performing Hollywood films in India include 'Avatar: The Way of Water' with $59.5 million, 'Avengers: Endgame' at $62.6 million, and 'Avengers: Infinity War' with $43.5 million.
The producers' bodies are planning coordinated action in response. 'All our producers and distributors bodies will have to meet in order to resolve the issue using government deliberations first. IMPPA and FFI (Film Federation of India) will approach the government to announce our joint stand on the issue,' Sinha says.
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