Ontario is getting ready for a new fight with the United States after President Donald Trump announced plans to slap a massive 100% tariff on movies made outside the U.S. In a post on his platform, Truth Social, Trump said he wants to tax all foreign-made films coming into America, a move that could severely hurt Ontario’s film industry.
Ontario’s Economic Development Minister Vic Fedeli didn’t waste time responding. Speaking at a news conference in Oakville, Fedeli said the province will “suit up” and head to Washington, D.C., to battle against this latest threat. “We’ll suit up, just like we have for every other particular mention of a tariff, head back down to Washington … and fight them one by one,” Fedeli stated firmly.
Fedeli, who represents Nipissing, said this issue hits close to home. His region hosts the filming of many popular Hallmark-style holiday movies, which he humorously called “Christmas kissy face movies.” He warned that Trump’s proposed tariff is a direct attack on Ontario’s film sector, which employs thousands and brings millions into local communities.
At the same event, Ontario’s Finance Minister Peter Bethlenfalvy joined in, saying the province will do whatever it takes to support businesses during this uncertain time. “There are many industries that are under attack. We have to face the reality that this is a policy choice coming out of south of the border,” Bethlenfalvy explained.
Trump Targets Foreign Movies With New 100% Tariff to Revive American Movie Industry
Tax Breaks and Support Rolled Out for Local Businesses
To help businesses facing this challenge, the Ontario government announced a boost in financial support. Bethlenfalvy revealed that Ontario will increase its Ontario Made Manufacturing Investment Tax Credit, which helps companies get money back when they invest in new buildings, machinery, or equipment.
Currently set at 10%, the credit will rise to 15%, meaning businesses can reclaim more when they improve their operations in the province. According to Bethlenfalvy, this move will provide an extra $1.3 billion over the next three years, with businesses eligible to receive up to $3 million per year in tax credits.
Bethlenfalvy also said they plan to expand the program so larger companies, including publicly-traded ones, can also benefit — not just small, Canadian-controlled private corporations.
Meanwhile, Premier Doug Ford is taking action on the federal level. He wrote to Prime Minister Mark Carney, listing Ontario’s priorities, including projects like the development of critical minerals, building electric vehicle supply chains, and even a new express tunnel under Highway 401. Ford has faced criticism for the tunnel idea, with some calling it a fantasy, but he remains committed to pushing it forward.
Addressing Trump’s proposed tariff at Queen’s Park, Ford expressed his frustration: “This guy, he’s just unbelievable. It’s everyday something new with him,” he said. Ford also suggested that Trump is rushing to act before the upcoming midterm elections, mentioning that Trump’s polling numbers aren’t looking strong.
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Tariff Could Wipe Out Jobs and Hurt Local Communities
Experts say the proposed 100% tariff could spell disaster for Canada’s film industry. Barry Hertz, deputy arts editor and film editor at The Globe and Mail, told CBC Radio that about half of all Canadian film and TV production comes from foreign projects, especially American studios that choose Canada for location shoots.
These projects bring jobs and money to local crews, producers, and actors across the country. If the tariff goes through, Hertz warns, no Hollywood company would want to film in Canada because it would become too expensive. “It would be prohibitively expensive and thus it would hollow out our industry,” he said.
Hertz also pointed out that while there are concerns in the U.S. about foreign competition, nobody in the film business supports this tariff plan. “This would just implode the industry,” he warned.
At a time when many countries are offering tax credits and other incentives to attract film production, Trump’s move could end up driving business away from Canada and hurting the communities that rely on this work. Ontario’s leaders say they are ready to fight back every step of the way to protect their industries and jobs.
