LOS ANGELES — President Donald Trump has initiated a conflict with Hollywood’s long-standing ally.
Canada, also known as Hollywood North, has served as a thriving production center for American movies and TV series for many years. The country not only provides attractive tax credits for U.S. studios but has also cultivated a skilled workforce of industry professionals both in front of and behind the camera.
According to Hollywood insiders interviewed by CNBC, Trump’s proposed tariffs on Canadian imports could jeopardize this relationship. Concerns have been raised that a trade dispute with Canada might lead to retaliatory actions that could harm film production, potentially resulting in the withdrawal of tax credits or the closure of stages to American studios. Despite this, some believe that the bond between Hollywood and Canada is robust and profitable enough to withstand the impact of Trump’s tariffs.
Canadian Prime Minister Justin Trudeau expressed his opposition to American tariffs on Canadian goods on a social media platform, vowing a strong and immediate response. In response to Trump’s announcement of tariffs on goods from Mexico, Canada, and China, Trudeau imposed retaliatory tariffs on American products, stating that their response would be comprehensive.
Following negotiations, Canada and Mexico agreed to a 30-day pause on the tariffs. Industry insiders suggest that if the tariffs are reinstated after this period, production budgets could face pressure, especially for projects that rely on imported textiles or unique materials like specialty glass from outside the U.S.
While some concerns exist regarding potential impacts on production costs, most studios primarily source materials locally. For instance, Los Angeles-based productions rarely import lumber from Canada. Films shot in other countries typically use local supplies or import them from the U.S. Catering supplies, which may see a slight price increase due to tariffs, are not expected to significantly affect budgets.
Moreover, many items on production budgets are rented, such as lighting and cameras, which are leased from studio warehouses. This practice helps insulate production costs from higher tariffs to some extent.
However, there are worries that increased tariffs could influence consumer spending and, consequently, box office revenues. Companies importing goods from affected countries are likely to pass on additional costs to consumers, potentially raising prices on various household items. Industry insiders fear that if consumers begin cutting expenses, visits to movie theaters could be among the first to be reduced.
Despite the challenges posed by Trump’s tariffs, industry experts believe that Hollywood will adapt to the consequences. The real concern lies in the potential impact of reduced consumer spending. The industry hopes that even with potential price hikes, upcoming blockbuster releases in 2025 will drive ticket sales and audience engagement.
