‘It’s going to hurt.”
That’s what Toronto Mayor Olivia Chow said Monday after U.S. President Donald Trump threatened to impose a 100 per cent tariff on any films produced “in foreign lands.”
In a post to Truth Social Sunday night, Trump said the American film industry is “DYING a very fast death” and charged that a “concerted effort by other nations” to draw filmmakers away from the U.S. equated to a national security threat.
While it’s unclear when or how exactly the tax would be implemented, U.S. Secretary of Commerce Howard Lutnick responded to Trump’s post saying: “We’re on it.”
Commonly referred to as “Hollywood North,” Toronto (as well as Vancouver) has long been a hot spot for American moviemakers due to lower costs and competitive tax credits.
We’re on it. https://t.co/r5zCLxZrem
— Howard Lutnick (@howardlutnick) May 4, 2025
Blockbusters such as “The Shape of Water,” “Suicide Squad,” and “Shazam,” just to name a few, were all filmed here and production studios such as Pinewood, Cinespace, and Revival House have footprints in Toronto.
Speaking to CP24, Chow said Toronto’s film industry employs 30,000 people on average and that beyond low costs and tax incentives, American moviemakers seek out the city for its talented production workforce.
“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, noting that the threatened tariff took her by surprise.
“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 added she’s hoping that the topic will come up when Prime Minister Mark Carney speaks to Trump in Washington on Tuesday.
According to the city, in 2022, film and television production in Toronto generated $2.6 billion in direct spending and was voted the number one “best place to live and work as a move maker” in a survey in 2024.
Beyond that, a January report by production tracking service ProdPro found that Toronto was the top preferred production location for studio executives for 2025 and 2026. California was number six.
In a statement to CTV News Toronto, Marguerite Pigott, film commissioner and director of entertainment industries for the City of Toronto, said: “We are aware of President Trump’s announcement of proposed tariffs on movies produced outside the United States and are working to gather further details to help understand any potential impacts on Toronto’s film industry.”
Pigott said the city is committed to working closely with the film industry, as well as provincial and federal governments, to determine the “best possible” outcomes for Canadian filmmakers and studios.
It’s not yet known if the tariff would apply to television series that are filmed outside of the U.S., of which many are produced in Toronto.
Film and television stakeholders react
Those working in Toronto’s film and television industry are reacting to Trump’s announcement, with one executive questioning how the tax would be implemented.
“What element of the cost of production are you (Trump) putting a tariff on? How do you calculate this tariff? It’s nonsensical,” Martin Katz, who produced such films as “Hotel Rwanda,” “Man on the Train,” and “A Dangerous Method.”
“Nevertheless, it may well have a chilling effect on the level of production,” he said.
ACTRA Toronto, the union which represents performers working in Canadian film, television, and radio, said while the full scope of Trump’s threat remains unclear, “it’s a reminder of just how interconnected our work is with the broader global industry.”
“We have been assured the government is tracking this closely. At this time, there’s no immediate impact to work in Canada, and the strength of our industry remains intact,” the union said in a statement released Monday.
According to ACTRA, Canada’s film, television, and digital media sector contributed over $11 billion to the national GDP in 2023-2024.
Speaking to CP24 on Monday evening, ACTRA’s executive director said this could be time for Canadian creatives to band together.
“It is a great moment for the industry as a whole, across the country, to come together, and it’s a great moment for Prime Minister Carney, who’s supposed to be in Washington tomorrow, to have this conversation, to talk about the global marketplace, the global industry that is film and television,” Alistair Hepburn said.
“This is not something that you can just slice off and assume everything is going to be fine for the U.S., because it’s going to hurt them.”
‘A direct assault’
Ontario Economic Development Minister Vic Fedeli called the proposed tax a “direct assault” on the province’s film industry.
“So we’ll suit up, just like we have for every other particular mention of a tariff. Head back down to Washington with our great agent, David Patterson, who’s joining us and the premier on all of these attacks, and fight them one by one,” Fideli said at an unrelated news conference on Monday.
Finance Minister Peter Bethlenfalvy, who is set to table the Ontario budget next week, was asked if the provincial government would subsidize the film and television sector if the tariff comes to pass.
“Let’s not get ahead of ourselves,” he said, while making note of the $11 billion in economic relief it announced for businesses last month in the face of Trump’s ongoing trade war.
“We have an incredible footprint in the film and TV industry…and of course, we’ll have a lot more in in the days to come, and leading up to the budget, which we’ll be tabling on May 15.”
