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Vipul Amrutlal Shah talks about impact of Trump's 100% film tariff on Indian movie industry, says "I don't think it will be such a big loss"

After US President Donald Trump announced a proposed 100 per cent tariff on films made outside the United States, director-producer Vipul Amrutlal Shah shared his perspective on the same and its impact on the Indian film industry.

ANI May 05, 2025 17:04 IST googleads

Vipul Amrutlal Shah (Image source/ANI)

Mumbai (Maharashtra) [India], May 5 (ANI): After US President Donald Trump proposed 100 per cent tariff on films made outside the United States, director-producer Vipul Amrutlal Shah shared his perspective on the same and its impact on the Indian film industry.
In a conversation with ANI, he said, "There are 2-3 aspects to this. First, there is not much detail about how this 100 per cent tariff will happen. Kyunki hamari jo filmein hoti hai vo bharat ki hi company vahan directly distribute karti hai aur bahut saari kuch filmein hoti hai jo vahan ke distributors hum appoint karte hai aur vo distribute karte hai. (Because our movies are directly distributed by Indian companies. There are a lot of movies that we appoint distributors and they distribute them.) To Bharat ki companies jo vahan film distribute karti hai unpe tariff lagega ( So tariff will be on Indian companies that distribute films there). How will it happen? What will happen? I think there are a lot of nitty-gritties that we will have to see now."
He also talked about the India-US trade deal and shared that the film industry issue "will also be discussed. "There is a big discussion about a trade deal between the US and India. The issue is that the trade deal should be concluded before October. So, I think the film industry issue from our side will also be discussed in that trade deal. All tariffs will be rationalised."
Highlighting another aspect of this announcement, he spoke on the investment in production in American theatres, less films being made and need of content, "American theatre mein jo productions mein investment huye hai vo 26 per cent se kam huye hai to filmein vahan par bhi kam ban rahi hai aur vahan par jo theatres ka jaal banaya hua hai vo kaise survive karenge without content (The investment made in productions in American theatres is less than 26 per cent, so films are being made less there too and how will the web of theatres created there survive without content)."
He continued, "Because if American films are also being made less and if other countries are not able to put their films there due to the high tariff, then it will be a big shock to their local industry as well. And I think that the theatre owners' association or their institutions will also explain to the American government that this tariff should not be imposed ya uska rationalisation hona chahiye."
However, he asserted that there won't be a "big loss" for the Indian film industry. "In India's business pattern, America contributes 5-7 per cent of the overall box office of the film. And even if 5-7 per cent of the box office is reduced due to these tariffs, then it will not be a big loss for our film industry. But if they impose tariffs and if the Indian government imposes tariffs on their films, then our films will have to face stiff competition from their big films. That will also be reduced. So, it will be beneficial for our local box office. So, there are many aspects to this. I feel that trade deal is the most important thing. And when all the points of the trade deal will be cleared and the trade deal will be done, then I believe that we will solve this issue there as well."
On how it will have an impact on Indian films, he said, "Jaisa Maine pehle kaha jo Indian films hai unka American particularly theatrical business vo pure business ka 5-7 per cent hai. And if it is a very successful film, then it is 7-8 per cent. It is not more than that. And after the tariff is imposed, the entire business will not be finished. A small part of it will be affected. So, it is possible that instead of 5-7 per cent, we will come to 3-4 per cent for a limited period of time. So, I don't think it will be such a big loss."
Meanwhile, US President Donald Trump has announced that he has directed the Department of Commerce and the US Trade Representative to immediately start the process of imposing a 100 per cent tariff on all movies coming into the US that are produced in other nations.
He said that the movie industry in the US is "dying" a very fast death and added that other nations were offering incentives to draw the American filmmakers and studios away from the US and termed it a "national threat."
In a post shared on his social media platform Truth Social, Trump stated, "The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN." (ANI)

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