President Donald Trump announced on Sunday the application of customs duties of 100 % on all films produced outside the United States. This could hurt Canadian cinema industry, notably in Toronto, Vancouver and Montreal, but several questions remain as to the implementation of such rates.
After the initial surprise, it is the confusion that reigns with several players in the industry. Donald Trump says he authorized the competent federal agencies to immediately implement the process of levy these customs rights, but has given no details on their concrete implementation.
We will wait to see, no one knows the rules. I find that it completely smells of improvisation
Lance Roger Frappier, producer, director and president of Max Films, who notably produced The decline of the American Empire, Great seduction et The Power of the Dog.
Same bell sound at Stéphane Cardin, CEO From the Quebec Cinema and Television Office (BCTQ), whose mission is to contribute to Quebec’s development and competitiveness as an international caliber production center.
So far, prices [de Trump] concerned physical goods, but here we are in the field of services
he explained on Monday on the show Midi info On the first one.
Will the prices apply on the total cost of the film, on the price of indoor tickets, on the subscription to broadcast services? Even the American studios and the association that represents them, the motion Picture Association, did not rule.
For his part, the Minister of Culture and Communications of Quebec, Mathieu Lacombe, wrote on X: It’s worrying, but we don’t have all the details yet.
It should not be forgotten that in the Canada-United States-Mexico (ACEUM) agreement, there is an exceptional cultural clause. Can these cinema prices resist the courts?
Canada, a paid choice
According to a TV movie Canada report, nearly 75 % of the productions made in Canada were American in 2023. In Quebec, the local industry is a little stronger, but American productions still generate millions of dollars in income.
Several reasons explain this attraction of foreign studios for Canadian territory, starting with advantageous tax credits. Basic tax credits are 35 % of eligible labor expenditure in British Columbia and 21.5 % of eligible production expenses in Ontario.
In Quebec, tax credits are 25 % all inclusive
to which we can add the low value of the Canadian dollar, another advantage for our southern neighbors, says Michel Trudel, founder and former owner of the MELS studios in Montreal. The latter today directs an registration company for cinema and events.
In addition to that, with its architecture, Quebec can represent France, London, etc. We can do anything here. The actors are also charmed to come and turn to Montreal, they are not followed by paparazzi and they can go to good restaurants without being disturbed.
According to Mr. Trudel, three filming of American productions are on the calendar in the metropolis this year, including that of the film The Housewife With Naomi Watts and Ty Sheridan. It is less than the seven of last year, but this slower start to the year is due in part to the fires that ravaged Los Angeles last fall, explains the entrepreneur.
Bernard Larivière, president of AQTIS 514 IATSE, is also concerned about the announcements of the American president for the some 8000 technicians of image and sound who are members of his union in Quebec. He explains that a quarter, even a third of these freelancers work on American projects. And for some of them, 100 % of their income is linked to American productions.
Our technicians are freelancers, their job is not assured. After the strike of American writers, after the pandemic, we would have needed a little stability, but we have this news from Trump. Our members are very worried
he explains, saying also being confused on the procedure to follow in the face of these announcements.
It’s really not clear. To carry actions, we will have to understand more what we are talking about. How will it be done? Who will pay?
What impacts on visual effects?
Beyond filming, related sectors of the film industry could be affected. A bit like cars, films include multiple components that are not always designed in the same place.
Quebec is one of the world leaders for visual effects and animation
explains Stéphane Cardin, of BCTQ.
You have to see if it is only the physical shoots that would be affected by Trump’s prices, or also these services, as well as the postproduction services. All this together, it represents about $ 1 billion in economic activity per year in Quebec.
Faced with so many uncertainties, other players in the industry preferred to wait to decide on the announcements of the American president. This is particularly the case of Grandé Studios, in Montreal, who said it was too early to comment
in the absence of a sufficient context.
Others like Roger Frappier already evoke possible counter-tale: Will Europe and Canada be said to be “80 % of American films are on our screens, we apply prices on these productions”? Donald Trump has just opened a door.
With information from Valérie-Micaela Bain and Nabi-Alexandre Chartier
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