Three Potential Impacts of U.S. Tariffs on Nepali Films

KATHMANDU: U.S. President Donald Trump’s recent announcement to impose a 100% customs duty on all foreign films is expected to impact the global cycle of film production, distribution, and exhibition. Following this declaration, the release of Nepali films in the U.S. may also be affected.

According to Patrick Subedi of Seven Seas International, a company that distributes Nepali films in the U.S., if Trump’s proposed policy is implemented, it could have three major effects:

First Impact: The cost of acquiring distribution rights and completing legal procedures may increase. This means distributors would need to purchase film rights at nearly double the original cost. For instance, for a film worth NPR 5 million, the distributor might have to spend up to NPR 10 million, including customs duty. As a result, distributors may only invest in films with strong commercial potential.

Second Impact: Due to the increased financial risk, the number of Nepali films released and screened in the U.S. may decline. In 2024 (2081 B.S.), 18 Nepali films were released across the U.S. This number could fall by about 30%, limiting the annual release count to around 10 or 11 films.

Third Impact: Smaller markets and independent theaters—where Nepali films are typically shown—could be affected. While global distributors with worldwide rights may adapt more easily, those purchasing U.S.-only rights might hesitate. “Buyers may be reluctant to acquire U.S.-only rights. Worldwide releases might become the more feasible option,” Subedi explained.

Despite the challenges, Subedi also sees a potential upside. “This could increase demand for quality films and encourage content filtering. I see this as a positive outcome,” he said, adding that if implemented, the market could shrink by 40–50%.

The U.S. is currently the largest international market for Nepali films. In 2024, 18 Nepali films were released there. Among them, Purnabahadurko Sarangi reportedly grossed nearly $1 million in the U.S. market. After the U.S., Australia and the Middle East are the next largest markets for Nepali films.

Although Trump has made the announcement, several details remain unclear. It is yet to be confirmed whether the tariff would apply only to foreign-language films or also to Hollywood productions made abroad. It’s also uncertain whether the rule will apply only to theatrical releases or to OTT platforms as well.

Despite the ambiguity, Subedi confirmed that the previously scheduled release dates of upcoming Nepali films remain unchanged. Seven Seas International will release Oonko Sweater on May 9, followed by Koshedhunga on August 28, Jari 2 in September 2025, and Pahaad in October 2025.

Trump made the announcement on Monday, stating that the American film industry is “rapidly heading toward death,” and said he is authorizing the U.S. Department of Commerce and the U.S. Trade Representative to initiate the tariff process.