Trump’s 100% Tax Hits Telugu Cinema Hard in the U.S.

The Telugu Film Industry in the U.S. is facing a major challenge after former U.S. President Donald Trump announced a 100% import tax on foreign films. This unexpected move has caused widespread concern among Indian filmmakers and distributors especially those involved in Telugu cinema.

Previously Telugu films were imported into the U.S. without any additional tax. Now distributors must pay the same amount in tax as the original purchase price. For instance, if a distributor buys a film for \$1 million, they now have to pay an extra \$1 million in tax, doubling the cost. This change makes releasing Telugu films in the U.S. much more expensive and risky.

The sudden announcement has created confusion. It is still unclear whether the tax will apply to movies that were already bought or are about to be released. Distributors are now hesitant to proceed with new deals fearing heavy financial losses.

This tax could seriously harm the Telugu film market in the U.S. which has been an important source of revenue for Indian producers. There is also concern about its impact on digital platforms like Netflix and Amazon Prime Video. If the tax includes streaming content, these platforms might avoid purchasing Telugu films.

Many in the industry are hoping that Hollywood will push back as such a policy could lead other countries to impose similar tariffs on American movies. This could trigger a trade conflict affecting the global entertainment industry.

For now, the Telugu film industry is waiting anxiously. Without any exemptions or changes, this new tax could significantly damage the overseas market for Indian films.

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