Montreal movie producers warn Trump's foreign film tariff could devastate industry
Trump says he has instructed federal agencies to begin collecting tariffs immediately
U.S. President Donald Trump announced Sunday that he is imposing 100 per cent tariffs on all films produced outside the United States, a move that could have major consequences for Canada's film industry, especially in cities like Montreal.
Trump says he has instructed federal agencies to begin collecting the tariffs immediately but gave no details on how it would work.
"We're waiting to see — no one knows the rules. To me, it feels completely improvised," said Roger Frappier, a Montreal-based producer, director and president of Max Films.
Simon Peacock of ACTRA Montreal called the move devastating and "a little terrifying."
Peacock, who represents actors and other on-screen talent, said the impact would be significant.
"It'll be a huge blow for the industry," he said. "It's 180,000 jobs and $11 billion for the GDP of Canada. So the impact is enormous."
In a social media post, Trump accused other countries of hurting the U.S. film industry by luring productions away with incentives, even calling it a threat to national security.
Quebec a major player in film industry
Quebec is a major player in the sector, with foreign film and TV production generating about $1 billion a year in economic activity, according to the Quebec Film and Television Council.
Without American shoots, the council says local productions could suffer.
"We would not be able to maintain the same quality of infrastructure or equipment at the cutting edge of technology or even the breadth and quality of the crews," said Stéphane Cardin of the council.
The council's mandate is to support Quebec's growth and competitiveness as a world-class production hub.
"Until now, Trump's tariffs have targeted physical goods, but this is a service industry," Cardin said Monday on Radio-Canada's Midi info.
It's unclear whether tariffs would apply to the full cost of a film, box office ticket sales or streaming subscriptions. Major U.S. studios and the Motion Picture Association have yet to comment.
Quebec Minister of Culture Mathieu Lacombe posted on X: "It's concerning, but we don't have all the details yet."
U.S. productions generate millions in Canada
The Canada-U.S.-Mexico Agreement (CUSMA) contains a cultural exemption clause. Whether these tariffs would withstand legal challenges remains to be seen.
According to a report by Telefilm Canada, nearly 75 per cent of productions shot in Canada in 2023 were American. In Quebec, the domestic industry is relatively stronger, but U.S. productions still generate millions in revenue.
Several factors explain Canada's appeal to foreign studios, including attractive tax credits. In British Columbia, base tax credits cover 35 per cent of eligible labour costs. In Ontario, they're 21.5 per cent of eligible production expenses.
In Quebec, the all-in tax credit is 25 per cent. The low Canadian dollar provides another advantage for U.S. producers, says Michel Trudel, founder and former owner of MELS Studios in Montreal. He now runs a rigging company serving film and live events.
"Plus, with its architecture, Quebec can stand in for France, London — you can shoot anything here," said Trudel. "Actors love filming in Montreal. They aren't followed by paparazzi and they can go out to restaurants undisturbed."
Trudel said three American productions are slated to film in Montreal this year, including The Housewife starring Naomi Watts and Ty Sheridan. That's down from seven last year, though the slower start is partly due to wildfires that swept through Los Angeles last fall.
Bernard Larivière is also worried about the announcement's impact on the roughly 8,000 image and sound technicians represented by his Quebec union, AQTIS 514 IATSE.
He said up to one-third of those workers are involved in U.S. projects. For some, those productions make up 100 per cent of their income.
"Our technicians are freelancers," Larivière said. "Their jobs aren't guaranteed. After the writers' strike and the pandemic, we were hoping for some stability. Now we have this Trump announcement. Our members are very worried."
He said it's unclear what step to take next. Beyond filming, other parts of the industry could be affected. Like cars, movies are made up of multiple components produced in different places.
"Quebec is a global leader in visual effects and animation," said Cardin.
He said it remains to be seen whether the tariffs would apply only to physical shoots or also to services like post-production.
Faced with uncertainty, some in the industry are holding off on responding. Grandé Studios in Montreal, for instance, said it was too early to comment without more context.
Others, like Frappier, are already raising the possibility of retaliatory tariffs.
"Will Europe and Canada say, '80 per cent of the movies on our screens are American, let's slap tariffs on them?' Trump just opened a door," he said.
Written by Isaac Olson, with files from Gloria Henriquez and Radio-Canada