Effect on Canadian industry could be widespread after Trump threatens tariffs on films
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The latest salvo in U.S. President Donald Trump's trade war is a threat to slap 100 per cent tariffs on foreign films.
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In a post to Truth Social Sunday night, Trump wrote: 'I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.' He added: 'WE WANT MOVIES MADE IN AMERICA, AGAIN!'
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Trump's reason for the move was that the U.S. film industry is dying 'a very fast death,' and that other countries 'are offering all sorts of incentives to draw our filmmakers and studios away from the United States.'
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The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 4, 2025
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Both points are, broadly speaking, true. Filming in Los Angeles dropped 22.4 per cent in the first quarter of the year, NBC reported. It added that there are economic knock-on effects that include restaurants, retail and support services.
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Meanwhile, tax incentives are part of the business of filmmaking around the world. For instance, the Film or Video Production Services Tax Credit from the government of Canada provides eligible companies with a tax credit of 16 per cent of qualified Canadian labour expenditures. There are similar credits for both domestic and foreign productions at the provincial level as well.
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America has its own tax credits. Last year, California Governor Gavin Newsom more than doubled his state's film and TV tax credit program to $750 million from $330 million. But there is no national tax credit.
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Charlie Keil, a professor of film and history at the University of Toronto, told National Post that Trump's announcement was 'very short on details' and that it was difficult to know how such a tariff would even work.
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The simplest example would be a Canadian, French or Chinese film that was looking for distribution in America. 'Those you could see easily … the hundred per cent tariff being applicable,' he said.
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'But what about films that … 80 per cent of them are made in the U.S., and then some of the location shooting is done in another country? Or what about all the production is done in the U.S. but then some of the post-production is done in another country? Are those also going to be subject to 100 per cent?'
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That was echoed by Noah Segal, co-president of Canadian production and distribution company Elevation Pictures. He noted that Dune 2 was an American studio production with a Canadian auteur (Denis Villeneuve) at the helm, and worldwide shoots including Hungary, Jordan and Italy.
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'The game has always been ownership of (intellectual property),' Segal said. 'So I'm not sure what he (Trump) is afraid of. If the Americans own the majority of content, they win, no matter if it's shot in Germany, Latvia or the moon. It doesn't matter.'
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