So Donald Trump has threatened to put 25% tariffs on Canada and Mexico and 10% on China. I don't know why Donald Trump has done this but it could be because:
A) He's a financial genius who knows something that not one person on Wall Street does.
B) His OCD flares up when he thinks of countries that start with the letters C and M.
C) He still thinks he is on The Apprentice reality show and this is a storyline for the International spin-off.
His tariffs may have unintended consequences for Hollywood, potentially accelerating the film and TV industry’s shift away from California. With a weakened Canadian dollar, U.S. producers could see even greater financial incentives to move productions north, undermining Governor Gavin Newsom’s efforts to retain film and television projects in California.
A Cheaper Canadian Dollar Means More Hollywood Productions Up North
The Canadian dollar has already dipped to around 70 cents against the U.S. dollar, the lowest since 2020. If Trump’s tariffs further depress its value, Canada becomes an even more attractive location for Hollywood productions. Major studios and streamers have already started returning to Toronto and Vancouver post-strikes, and a weaker loonie makes the savings too good to ignore.
Paul Bronfman, CEO of Comweb Corp., believes that if the loonie falls below 70 cents, American producers will find it nearly impossible to resist filming in Canada. With Toronto and Vancouver offering top-tier soundstages, crews, and post-production facilities, the economic benefits outweigh the logistical challenges of filming outside the U.S.
Impact on Visual Effects and Independent Filmmakers
The lower Canadian dollar could also boost Canada’s VFX industry, making it more affordable for U.S. studios to outsource visual effects work. However, indie filmmakers face a different reality. While American financing may stretch further, Canadian indies must now compete with deep-pocketed studios for resources like soundstages and crew.
Nicholas Tabbarok, a Toronto-based producer, explains that smaller productions must fight for space and talent against Netflix’s tentpole projects. This could drive up costs for local filmmakers despite the influx of American projects.
Will Trump’s Policies Keep Work in California?
Trump’s complicated relationship with Hollywood suggests he may not prioritize keeping productions in California. Newsom’s attempt to increase state tax incentives to $750 million could soften the impact of an industry exodus, but it may not be enough to counteract the financial appeal of shooting in Canada.
With U.S. studios seeking cost savings and Canadian studios offering top-tier production infrastructure, Hollywood’s northward migration could accelerate.
UPDATE: Trump has paused the tariffs for Canada and Mexico while they negotiate.
But the big question remains: If Donald Trump does actually think he's still on the reality show how soon before Arnold Schwarzenegger replaces him again for the Celebrity version?
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Source: Hollywood Reporter
Photo Credit: Getty Images
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