Lights will shine bright this week at the Toronto International Film Festival, a prestigious event showcasing Canada’s role in the global film sector. However, as the U.S. mulls over a national initiative to retain film productions within its borders, questions arise about the potential impact on Canada’s film industry, which hosts numerous U.S.-based film sets.
In a recent statement, U.S. President Donald Trump highlighted bipartisan backing for a federal tax incentive aimed at retaining film production in the U.S. and preventing its shift “to Canada and other Countries.” This proposed legislation, dubbed the Motion Picture, Television and Entertainment Revitalization Act by Trump, has sparked discussions among industry professionals and advocates in the U.S. who have long advocated for such investments.
The decline in jobs within Hollywood’s core area has been stark. Data from the Otis College of Art and Design indicates a significant drop in employment in Los Angeles County’s film and television sector, with a 26% decrease by the end of 2025 compared to 2010 and a 38% decline from a mid-2022 peak.
While it may seem like Canada is monopolizing U.S. film and TV productions, industry statistics show a broader picture. Despite an overall decrease in TV production, productions are finding homes not only in Los Angeles but also in various American states and the U.K. In 2024, a quarter of U.S.-scripted TV series were filmed in Los Angeles, while percentages of productions were also distributed in the U.K., Georgia, and British Columbia.
The U.K. surpassed Canadian provinces as a filming hub for streaming TV series, cable TV series, and movies with theatrical releases in 2024. However, Canada led in made-for-TV movies, with British Columbia hosting around 26% of TV films distributed that year.
The rivalry between Canada and the U.S. as preferred filming locations has been ongoing since the late 1990s and early 2000s. Canada’s implementation of a federal tax credit in 1997 to attract foreign productions marked a significant shift, prompting Hollywood to take notice and shift productions to Vancouver in the late ’90s.
Although Canada faced backlash from Hollywood and calls for countervailing tariffs on U.S. productions filmed in Canada with subsidies, the trend of incentivizing film production spread globally. Various jurisdictions, including U.S. states and other countries, rushed to introduce or expand their tax incentive programs to attract productions.
With the proliferation of financial incentives worldwide, including in the U.K., where major productions like the upcoming Avengers: Doomsday are being filmed, the focus on Canada by the U.S. administration seems more like political rhetoric than an accurate reflection of production trends.
The potential impact of a U.S. federal incentive on Canada’s film industry remains uncertain. Foreign film and TV productions generated over 97,000 jobs in Canada in 2024/25, contributing significantly to the country’s economy. Despite the prospect of U.S. productions potentially shifting, Canada’s competitive advantages such as a favorable exchange rate, diverse landscapes, and skilled workforce continue to attract filmmakers.
To navigate potential changes in the industry, Canada must invest in local projects and support initiatives like the Online Streaming Act, aimed at enhancing Canadian content on global streaming platforms. By strengthening its domestic industry, Canada can secure its cultural legacy and resilience amid evolving global dynamics.