U.S. Tariffs and the Canadian Film Industry: Uncertainty Looms

The Canadian film industry is facing a new wave of uncertainty as the U.S. threatens to impose a 25 per cent tariff on Canadian goods, according to media reports. While the planned tariffs have been temporarily paused, industry professionals are bracing for potential ripple effects that could impact production costs, employment, and future investments.

For film crews and service providers this side of the border, the primary concern is the impact of a weakened Canadian dollar. Historically, a lower loonie has been a double-edged sword—it makes Canada an attractive filming destination for U.S. studios looking for cost savings, but it also drives up costs for domestic productions reliant on imported goods. Key supplies such as set materials, costumes, and food services could see significant price hikes, forcing local businesses to absorb costs or pass them on to production budgets, as reported in The Canadian Press.

Some, however, like Paula Fletcher, chair of Toronto’s film, television and digital media advisory board, see potential for optimism. “The lower dollar has been very healthy for our industry. And we don’t know, it may even go lower, which would be bad for the country, but it’s always positive for the film industry,” Fletcher said earlier this month. “We have a film industry, which is more of a service industry, so it’s kind of floating on top of the manufacturing sector that will be really harmed with these tariffs.”

Meanwhile, Toronto-Danforth MP Julie Dabrusin maintained that the longstanding relationship between Canada and Hollywood producers, who benefit from local tax breaks and currency savings, is unlikely to be affected by the proposed U.S. tariffs. “There’s already a lot of interest and a lot of knowledge about what’s available here when it comes to talent, when it comes to the crews that are very skilled and support the industry. We’re a well-known entity, and we’ve shown a proven track record,” Dabrusin told The Hollywood Reporter.