The Indian Producers Association was surprised by President Donald Trump's recent proposal for 100% tariffs on foreign-made films entering the U.S. market, a move that threatens the $100 million drama business currently enjoyed by Indian cinemas in the U.S.

Shibashish Sarkar, president of the Indian Producers Association, warned that it would take longer to fully evaluate the situation. “It’s early to comment type.

If implemented, Sarkar believes that the direct impact will be the impact on the dramatic distribution. He explained: “Indian films have a box office of about $100 million at the total U.S. box office level +/- If this tariff is implemented, exhibitors will raise ticket prices and make consumers expensive, so even enough downturns will be greatly reduced.”

Indian films have been making great strides in the box office in North America. 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.

For Indian producers, alternatives may be equally problematic. "If exhibitors want to absorb prices, they will pass this loss to producers, so the share of producers will also drop significantly. Either way, from a dramatic perspective, the share of Indian producers will have an impact."

The ripple effect will also go beyond dramatic releases to digital platforms. "In addition, digital or paid TV transactions made by Indian producers for global rights will be affected. This may be drama rights or direct mastery of digital movies," Sarkar noted.

Sarkar also pointed to the potential consequences of the shooting in Hollywood, India, which suggests they face tariffs when bringing content back to the United States for release.

Abhay Sinha, president of the Indian Film Producers Association (IMPPA), also warned of mutual damage, on behalf of 25,000 Indian producers and distributors. Sinha tells typeplease note that American exhibition chains also rely on Indian content to survive.

Hollywood movies have a great influence in the Indian market, accounting for about 10% of the annual $2 billion box office. The best performing Hollywood movies in India include $59.5 million, “Avengers: The Final Game” for “Avatar: The Way of Water” at $62.6 million, and “Avengers: Infinity War” at $43.5 million.

The producer’s institutions are planning to coordinate the reactions of action. "All our producers and distributor agencies must first meet to resolve the issue. IMPPA and FFI (Indian Film Federation) will contact the government to announce our common position on this issue," Sinha said.