Canadian film industry confused after U.S. movie tariff threat

U.S. President Donald Trump’s latest trade threat has the Canadian film industry bracing for impact, but nobody is quite sure what that impact would be.

On Sunday, Trump floated the idea of a 100 per cent tariff on all films made outside of America, labelling foreign film production a “national security threat” and claiming a “propaganda” campaign is pulling Hollywood out of the country.

In the post on his Truth Social platform, Trump claimed that the U.S. film industry is “dying a very fast death,” blaming other countries for offering incentives that “draw our filmmakers and studios away from the United States.”

Trump later said that he would meet with industry executives about the proposal, but further specifics or dates weren’t provided.

The White House also confirmed that no final decision had been made as of Monday.

“I am puzzled by what Trump is actually talking about,” said Patricia Gruben, an independent filmmaker and former film professor at Simon Fraser University.

“My first thought was that he’s complaining about American productions shooting in Canada. But then he called it a national security threat, mentioning messaging and propaganda. It’s very confusing,” Gruben added.

Canada — particularly British Columbia — has long been a top destination for what are known as “runaway productions,” U.S.-funded projects that film abroad to save money.

Vancouver, often nicknamed “Hollywood North,” is home to a multi-billion-dollar film and TV industry that draws major studios thanks to its talented crews, varied locations, and competitive tax incentives.

Just last month, the province increased its film and TV tax credit from 35 per cent to 40 per cent, hoping to attract even more business.

If a Trump-led administration were to impose a 100 per cent tariff on foreign-made films entering the U.S., it remains unclear how — or even whether — Canadian-made content would be directly affected.

“Films aren’t really a product, in the sense that a vacuum cleaner is a product. Yet, at the same time, a film can be made in several different countries, the ways cars are. So, where do you draw the line? Do you just charge higher ticket prices and take that as some sort of tax? It’s really unclear,” said Gruben.

Gruben says that ambiguity is leaving producers and industry workers unsure how to react, especially in a sector already struggling to rebound from years of disruption.

“Production is really down from where it was, let’s say in 2019, and we complain about the American film industry, because I know a lot of people who really would much rather promote our domestic industry. But in fact, it’s kind of a two way street, because it not only brings a lot of money into the economy, but it also trains the crews, and it provides visibility for our actors. So if all of that goes away, then I think our domestic industry will be hurting too.”

At this point, Gruben, who describes herself as a “Trump watcher,” suspects the policy may never materialize.

“Trump often says things impulsively that come from a conversation he’s had with someone else, and it all gets changed once people realize how impossible it really will be to enact whatever he’s imagining. So I’m hoping that it will subside, at least, because I think it’s going to be really hard on us if it doesn’t.”