Since assuming office in january of this year, US President donald trump has been making radical choices in every sector. Trump's actions have already had an impact on a number of industries. His recent decision to impose 100% taxes on all imported films will have a significant impact on indian productions.
 
We are all aware of how much the telugu cinema business, in particular, depends on the collections of North America.  Trade circles now discuss how our telugu films would be impacted by this new 100% tax.


There is now no tax associated with showing any foreign film in the United States.  Now, however, things would drastically change.  For instance, a distributor that purchases a telugu film by paying the producer "x" must also pay the US government "x" in tariffs.  This implies that he must pay "2x" for a single film.
 
As a result, US distributors will reconsider paying producers exorbitant sums for the right to distribute.  Because they question the return on investment, they will reconsider purchasing mid-range movies. They would rely on big-budget, high-profile movies to pay back the government tariffs and the exorbitant cost of distribution rights.  


There won't be an opportunity to raise ticket prices either, as several distributors in the US are apparently demanding exorbitant pricing. The foot traffic would drastically decline if they did that. 

Even telugu filmmakers rely significantly on US distribution rights, particularly for high-profile productions.  Those distribution buy prices might also drop as a result of this new regulation.  Overall, it appears that telugu cinema will be significantly impacted by Trump's regime.  We've heard that this week's releases of Single and Shubham would be impacted by the rule, which trump said will take effect immediately.  If the law is put into place immediately, we will have to wait and observe how these films perform at the US box office. 


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