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The Tamil diaspora forms a dedicated audience base, and in many cities like Dallas, Chicago, and San Francisco, Tamil films routinely sell out screenings.
Tamil cinema, which has been steadily gaining global visibility, could lose momentum in one of its most lucrative overseas markets.
The US has always been an important overseas market for Indian films, especially Tamil cinema. From blockbuster Rajinikanth releases to Mani Ratnam’s period epics, Tamil films have consistently pulled big crowds in American theatres. But now, that overseas reach may be under threat.
Trump’s New Policy
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US President Donald Trump has announced a sweeping set of tariffs designed to protect American industries. After raising duties on imported goods and pharmaceutical products from India, his latest focus is on films. Beginning October 1, a 100 percent tariff will be levied on any film produced outside the United States.
Trump argues that Hollywood has been weakened by competition from foreign films and blames California, the heart of America’s film industry, for losing ground to other countries. He also points to the Hollywood strikes of 2023 and 2024, which cost the industry nearly 5 billion dollars, as proof that urgent measures are needed.
Why Tamil Cinema Is at Risk
For Tamil cinema, which has seen remarkable growth overseas in recent years, this tariff could be a serious setback. Films like Jailer, Leo, Ponniyin Selvan, and Vikram drew record audiences in the US, often opening in hundreds of theatres and making headlines for their box office collections abroad.
The Tamil diaspora forms a dedicated audience base, and in many cities like Dallas, Chicago, and San Francisco, Tamil films routinely sell out screenings. With a 100 percent tariff, however, the cost of distributing and screening these films in the US will rise sharply.
That could translate into much higher ticket prices for audiences, making them less attractive compared to Hollywood blockbusters. Smaller producers may find it nearly impossible to release films overseas, while big-budget productions could see their profits slashed.
Beyond Box Office Numbers
The impact goes beyond revenue. Overseas releases have been a matter of pride for the Tamil film industry. They help showcase Tamil culture, language, and storytelling to a global audience.
They also serve as an important part of the recovery model for high-budget films, where domestic collections alone are not enough. If this policy comes into effect without exemptions, many Tamil films may be forced to skip theatrical releases in the US and instead rely entirely on streaming platforms.
While streaming has given Tamil cinema international reach, it does not replace the prestige or earnings of a successful theatrical run abroad.
The Uncertain Road Ahead
India’s pharmaceutical exports to the US last year were valued at more than Rs 31,000 crore, and the new tariff on that sector is already expected to hit manufacturers hard. For films, the numbers may not be as large, but the symbolic impact is significant.
Tamil cinema, which has been steadily gaining global visibility, could lose momentum in one of its most lucrative overseas markets. For audiences in America, the question is whether they will continue to see their favourite Tamil films on the big screen or if Trump’s tariffs will push those stories behind a digital paywall.
For producers in Chennai, the challenge is clear: adapt quickly to new realities or risk losing a valuable international audience.
About the Author
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
Chennai [Madras], India, India
October 01, 2025, 13:35 IST
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