Poster of RRR, directed by SS Rajamouli.
(Credit: Twiiter/@RRRMovie)
Hyderabad: As the festive season begins from Dasara, the Telugu film industry is preparing for one of its busiest release calendars. But celebrations may be dampened this year, with US President Donald Trump announcing a 100% tariff on films made outside America. The move has raised alarms across Tollywood circles, as the US is the single-biggest overseas market for Telugu cinema.
Watching films during Dasara and Sankranti is a cultural ritual in Telugu households. This season, nearly 20 major films are lined up for release, with box office stakes pegged at around Rs 6,000 crore. The industry fears that the tariff could hit collections as blockbuster Telugu releases often premiere across hundreds of screens in America.
Tollywood’s ace director SS Rajamouli’s next outing with Telugu super star Mahesh Babu is being made with a staggering budget of Rs 1,200 crore. Team Rajamouli has plans to release the movie in 2026 in more than 1,000 screens across the world, including North America.
For example, Prabhas’s Kalki 2898 AD earned $18.5 million in the US, underscoring the significance of the diaspora audience. Baahubali 2 remains the highest grosser at $22 million, while recent hits like RRR, Pushpa 2, and Animal each collected between $15–19 million.
Tollywood films today are usually released across 300 to 400 screens in the US, on par with Hindi films. At times, overseas box office takings even outstrip domestic collections.
“Tariff in the US would definitely have an impact on returns on Tollywood movies. At least 20 movies lined up to be released in the next two to three months are being made with a budget of Rs 300 crore each. And for them the US market is a big thing. It’s as simple as it can get. One ticket price in USD is 10 tickets price in INR,” a film critic Prasen Bellamkonda told DH.
According to an Indian Media and Entertainment Industry Report by FICCI-Frames and KPMG, the US accounts for nearly 85% of overseas revenues for Telugu films, contributing 5–10% of their overall box office share. The Producers Guild of India estimates that the Indian diaspora in the US spends close to $100 million annually on Indian-language films including Telugu, Hindi, Tamil, Malayalam, Punjabi and Bengali.
However, affordability is a looming threat. Tickets for big Telugu releases in the US already cost $15–20, often higher for premieres. “If tariffs push prices up to $30–$40, audiences may stay away, which will hurt distributors and producers alike,” an NRI distributor who also works on IT projects from New Jersey told DH.