Canada’s film industry could be the next sector to face tariff disruptions.
What happened: Donald Trump said that he will impose a 100% tariff on all movies made outside of the U.S. — a plan he initially proposed back in May — to revive the domestic film industry, which he claims has been stolen like “candy from a baby.”
- Trump also specifically called out California for ceding ground, though in July the state doubled its funding for its film and television tax credit program to attract more production.
- As with many of Trump’s tariff plans, this idea seems a little half-baked, and it remains unclear if producers or distributors would bear the brunt of the levies.
Zoom out: The motivation behind the proposed tariffs could be inspired more by cultural motives than economic ones. Trump’s animus towards foreign films goes back to at least 2020, when he lamented the Oscar’s selection of South Korean hit Parasite as Best Picture.
Why it matters: Canada would arguably be the biggest loser of these tariffs as our film industry relies on American shoots. Between April 2023 and April 2024, almost half of all TV and movie productions in Canada were financed by foreign producers (mostly Hollywood).
Yes, but: Finding the legal basis to levy these tariffs could be tricky as some argue that films are IP, a part of the global services trade in which the U.S. typically runs a surplus.—QH