**Indian Film Stocks Plummet Following Trump’s Tariff on Foreign Movies**
*By Mudit Dube | Sep 30, 2025, 01:46 PM*
Shares of media and entertainment companies took a significant hit on Tuesday after US President Donald Trump announced a 100% tariff on movies made outside the United States. This unexpected move is set to have a major impact on the Indian film industry, which exports films in multiple languages to the American market.
These foreign films, particularly Indian movies, have a strong following among the Indian diaspora living in the US. The announcement immediately affected market sentiment, with the Nifty Media index falling over 1%, and seven out of its ten constituents trading in the red.
**Trump’s Tariff Announcement**
In a post on Truth Social, President Trump stated, “Our movie-making business has been stolen from the United States of America, by other countries, just like stealing ‘candy from a baby.’” He went on to confirm that a 100% tariff would be imposed on any and all movies produced outside the US.
Among the impacted stocks, Prime Focus emerged as the biggest loser, sliding 5% to hit its lower circuit limit at ₹175.94. Other notable declines included PVR INOX, which fell nearly 3% to ₹1,072.10, and Mukta Arts, down close to 2% to ₹68.
**Market and Industry Impact**
The United States represents one of the largest markets for Indian films, largely due to its substantial Indian diaspora community. India’s film industry produces movies in several languages that enjoy widespread popularity among this diverse audience.
According to a 2017 Forbes report, Indian language films have become a lucrative business across the US and Canada, with revenues frequently exceeding $8 million and sometimes surpassing $10 million per title. The new tariff significantly threatens this revenue stream and could disrupt the distribution and consumption of Indian films in North America.
**Concerns Over Enforcement**
Industry analysts and market watchers have raised questions about how these tariffs will be enforced, especially given the increasing distribution of movies and TV shows through digital platforms. Enforcement challenges loom large in the digital age, where content crosses borders seamlessly.
Additionally, there are uncertainties regarding how this policy will affect US films that are shot in foreign locations or rely on international collaborations.
This tariff announcement follows the Trump administration’s recent imposition of new tariffs on branded pharmaceutical products not manufactured in the US, signaling a broader strategy to protect domestic industries.
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The full implications of this policy shift remain to be seen, but it is clear that the Indian film industry and global entertainment markets are facing a new wave of trade challenges.
https://www.newsbytesapp.com/news/business/pvr-inox-shares-fall-on-trump-s-tariff-on-foreign-films/story
