Toronto’s billion-dollar film industry, long a magnet for major U.S. productions, is now caught in the crosshairs of international trade tensions, as U.S. president Donald Trump proposes a sweeping 100% tariff on foreign-made films. Mayor Olivia Chow is sounding the alarm, calling the move “devastating” for Toronto’s screen sector, which employs tens of thousands and plays a key role in the city’s economy.
Impact on Toronto’s film industry
Toronto has long been a hub for international film productions, attracting projects due to its skilled workforce, state-of-the-art facilities and favourable tax incentives. The proposed tariff threatens to disrupt this dynamic by making foreign-made films more expensive for U.S. distributors, potentially leading to a decline in cross-border collaborations.
Mayor Chow, back in March, emphasized the interconnectedness of our two countries and the risk of ripple effects throughout the local economy as additional tariffs are announced. "We’re hurting each other, so I think just stop this nonsense," she said in an interview on CNN at the time, referring to the broader trade tensions between the U.S. and Canada. Chow further criticized the tariffs, arguing that they would lead to higher costs for American consumers, including increased prices for housing, gas and groceries.
Speaking to CP24 on Monday, Chow noted that Toronto’s film industry employs about 30,000 people annually and said American productions don’t come to the city solely for cost savings. “They’re not really foreign films. They are American films. Because we have such a diverse, top-notch workforce, that’s why they come here,” she said, adding that the threat of a tariff caught her off guard.
“Hopefully it will get sorted out. If not, it’s going to be devastating to the film industry, not just in Canada but also in the United States,” Chow said. She also expressed hope that the issue would be addressed when Prime Minister Mark Carney meets with Trump in Washington on Tuesday.
Broader implications for the Canadian economy
Beyond the film industry, the proposed tariff could strain Canada-U.S. trade relations, particularly in sectors where cross-border supply chains are integral. Economists caution that retaliatory measures could escalate tensions, leading to broader economic repercussions.
In response to the tariffs, the City of Toronto has unveiled an economic action plan aimed at mitigating the impact. The plan includes measures such as providing property tax relief for industrial businesses and promoting local spending through initiatives like the "Love Local Shopping" campaign.
While the White House has indicated that no final decisions have been made regarding the tariff, the mere proposal has introduced uncertainty into the film industry. Stakeholders are closely monitoring developments, preparing for potential shifts in production patterns, and advocating for policies that support the continued growth and collaboration between the U.S. and Canadian film sectors.
Sources
1. CNN: ‘Stop this nonsense’: Toronto’s mayor on Trump’s trade war (March 17, 2025)
2. CP24: Trump’s movie tariff would be ‘devastating’ for Toronto’s film industry: Chow (May 5, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
