In a development that’s sent ripples through global entertainment circles, US President Donald Trump has dropped a cinematic bombshell—slapping a 100% tariff on all films produced outside the United States. And back home, filmmaker Mahesh Bhatt isn’t mincing words about the potential fallout, especially for the Telugu film industry.

The veteran director, known for his sharp industry insights, spoke to ANI about the implications of this bold move. His take? While Hindi films may suffer, it’s the Telugu industry that’s likely to bear the bigger brunt.

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“This was inevitable,” Bhatt said, adding, “but the real concern now is the scale of the impact—especially for Telugu cinema, which has a large consumption base in the US.”

According to Mahesh Bhatt, the international appetite for Telugu films—especially among Indian diaspora audiences in the US—has grown significantly over the years.

This means the tariffs could hit distributors hard, forcing them to shell out double the usual cost to screen or stream these films stateside.

“If a distributor was paying Rs. 100 earlier, now it’ll be Rs. 200. It’s only natural that fewer films will make it across,” Bhatt explained.

The Hindi film industry, in comparison, might manage to dodge the worst of the storm. Thanks to its wider global footprint and a more established presence across regions beyond the US, Bollywood could have more wiggle room.

Also Read: Shekhar Kapur criticizes Donald Trump’s 100% tariff on foreign films

But Bhatt didn’t just stop at voicing concern—he also acknowledged Trump’s rationale, calling it a strategic move to safeguard American interests.

“Hollywood is struggling. It’s no longer the Mecca of entertainment it once was. Productions are shifting abroad because other countries offer better incentives. Trump’s trying to pull things back, and from a domestic perspective, you can’t entirely blame him,” Bhatt said.

Still, he cautioned against jumping to conclusions too soon. “Is this tariff final? Or is it just a negotiation tactic?” he asked, hinting at possible future dialogue between countries or studios.

The filmmaker also raised a red flag for Indian cinema’s economic model—especially big-budget projects that bank heavily on international markets.

“We’re lucky to have a loyal audience base in India. People here love cinema—it’s in our blood. But large-scale productions that rely on overseas revenue, particularly from the US, are going to lose sleep over this,” he said.

Trump’s reasoning behind the decision? He claims the American film industry is “dying a fast death,” with foreign countries luring away US filmmakers through tax breaks and incentives.

Calling it a “national threat,” he has tasked the Department of Commerce and US Trade Representative to begin implementing the tariff immediately.