Shekhar Kapur says Trump's film tariff may backfire badly
What's the story
Filmmaker Shekhar Kapur has expressed his apprehension over US President Donald Trump's recent move to impose a 100% tariff on films made outside the US.
Hours after Trump's announcement, Kapur took to X (formerly Twitter) to slam the move.
He added that this could prompt Hollywood to think about shifting outside the US, opposite to Trump's intention to strengthen American cinema.
Box office reliance
Kapur highlighted Hollywood's dependence on international markets
Kapur stressed Hollywood's dependence on international markets by saying, "Over 75% of the box office of Hollywood films comes from outside the US. And a significant part of the budget of those films is spent outside the US."
He even warned that Trump's 100% tariff on imported films could lead the iconic American film industry to move outside the US, which he believes is "quite the opposite of what he intended."
Twitter Post
Read Kapur's post
Over 75% of box
— Shekhar Kapur (@shekharkapur) May 5, 2025office of Hollywood films come from outside the US. And significant part of the budget of those films are spent outside the US
President Trump’s imposition of 100% tarif on all films imported into the US may encourage Hollywood to move outside the US!
Quite the…
Tariff explanation
Trump's rationale behind imposing 100% tariff on imported films
Trump announced a 100% tariff on movies made outside the US, saying the American movie industry was facing a "very fast death" as other countries were incentivizing to attract filmmakers.
He called it a "concerted effort by other Nations and, therefore, a National Security threat."
Now, Trump has authorized the Department of Commerce to start implementing this 100% tariff on all films made abroad.
Tariff details
Uncertainty surrounds implementation of film tariffs
The details of how these tariffs will be implemented remain unclear.
There is no way to tell whether they will apply to movies on streaming services or those shown in theaters, or if they will be calculated on the basis of production costs or box office revenue.
Hollywood executives and the Motion Picture Association, which represents major studios, are seeking clarity on these details.
Filmmaking career
Kapur's journey from Bollywood to Hollywood
Kapur, who made his Bollywood directorial debut with Masoom, is known for his hits like Mr. India and the critically acclaimed Bandit Queen.
He later found recognition in Hollywood with the period film Elizabeth, its sequel Elizabeth: The Golden Age, and the war drama The Four Feathers.
His recent comments on Trump's tariff decision underline the possible impact on Hollywood's future and global operations.