Effect on Canadian industry could be widespread after Trump threatens tariffs on films
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U.S. productions come to Canada because of great locations, a cheaper dollar and well trained local talent, he said, none of which tariffs will impact in the short term. Bringing production back to America means 'less will be made and prices will be higher; therefore you'll have to charge consumers more. Once again, tariffs will affect the consumer more than anybody.'
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Keil noted that other countries have tried to push back against an influx of American films with tariffs and other methods. China famously has an annual quota on how many U.S. films that can be screened there, which it recently reduced in response to U.S. tariffs in other sectors.
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'There's been a whole arsenal deployed against a behemoth,' he said of other countries' efforts. 'This is the behemoth turning around and saying we want more for what is still for them a fairly lucrative industry to be taking place on domestic land.'
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The effect on the Canadian film industry could be widespread, he suggested.
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'Our industry is very much a supplemental service industry. We are kept afloat by the fact that we are the service industry of choice for many American-made entertainment products.' He added that Australia, the U.K. and much of eastern Europe are in a similar position. 'All of those industries would be damaged by this.'
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Justin Rebelo, CEO of Canadian studio Vortex Media, said the threat of tariffs highlights the need for Canadians to invest in the domestic industry. He noted that the Canadian Radio-television and Telecommunications Commission is holding hearings this month and next on regulations for Bill C-11, the Online Streaming Act, which became law in 2023. It amends the Broadcasting Act to include digital platforms, and gives the CRTC new powers with a goal of promoting Canadian cultural expression.
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'I think it's really important for Canadians to continue to have … the right to own their own (intellectual property) and their own content, and I think it's really important that all platforms that are existing here in Canada have an obligation and a requirement to invest in Canadian content. This only continues to escalate and highlight that importance.'
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On Trump's specific announcement, he said: 'For now I think it's just very vague. I'm not sure what else to say except that the devil will be in the details.'
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A similar tone was taken by Reynolds Mastin, President and CEO of the Canadian Media Producers Association.
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'While specific details are far from clear at this point, the proposed actions outlined in U.S. President Donald Trump's announcement will cause significant disruption and economic hardship to the media production sectors on both sides of the Canada-U.S. border,' he said in a statement to National Post.
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'Yesterday's announcement, and the uncertainty it has caused, underscore the incredible importance of ensuring that Canada has a strong, independent domestic media industry. We look forward to making this case at the upcoming CRTC C-11 hearings.'
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Segal suggested that a federal-level tax credit in the U.S. could help move more production back home, more efficiently than a tariff.
'I understand that (Trump) is noticing there's a problem, so good on him. But bad on him for trying to take a complicated problem and oversimplify it. At first blush, that approach won't work for anybody.'
Taking the example of Deadpool & Wolverine, which was shot in Canada, he said that if tariffs go into effect: 'Disney will still make Deadpool. It'll just cost 25 to 30 per cent more.'
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