NL

Possible Trump tariff on films could mean 'massive loss' for N.L. industry, says producer

Donald Trump wants more movies to be made in the United States, and a Newfoundland-based production company says it could have dire effects on the film industry if proposed tariffs come into effect.

Trump proposes 100 per cent tariffs on films 'produced in foreign lands'

Taralee Gerhard has made four movies in 2022 and has her sights set on eight to ten in 2023.
Taralee Gerhard, a producer with Fog and Fable Films, says Donald Trump's proposed tariff on foreign-made films could have a great impact on Newfoundland and Labrador's film industry. (Jeremy Eaton/CBC)

Donald Trump wants more movies to be made in the United States, and a Newfoundland-based production company says it could have dire effects on the film industry if proposed tariffs come into effect.

"It could mean a halt to productions, as in some movies will not come here," Taralee Gerhard, a producer with Fog and Fable Films, told CBC Radio's On the Go.

"[It] would be a massive loss of revenue and jobs not just for us here in Newfoundland, but all across Canada. Billions and billions of dollars and jobs will be lost."

On Sunday, Trump posted on his social media platform, Truth Social, he authorized the U.S. Department of Commerce to begin instituting a 100 per cent tariff on "any and all Movies coming into our Country that are produced in Foreign Lands."

Gerhard believes the tariff is a retaliatory move against China, which announced three weeks ago it would restrict the release of films made in the U.S. in response to Trump's tariffs on the country.

While those in the industry are left scratching their heads as to whether Trump's call will come to fruition, she says it could change the film landscape in Canada.

When U.S. television and movie channels like Hallmark — who have shot several movies in the province over the last three years — come to Newfoundland and Labrador, Gerhard says the channel gives them money to produce the movie in Canada.

If a tariff were to be put in place, it could drastically change plans.

"They say 'Ok, here's a million dollars to make your movie', than that million now becomes $2 million, and could potentially deter them from making movies here in Newfoundland or Canada," Gerhard said, adding her company now has four projects in jeopardy as a result of Trump's threat.

"It's either full steam ahead, or it's full stop. And if it's full stop on those projects … that's a lot of jobs lost."

A tariff would also likely impact the volume of content produced, she says, as production would likely slow down as companies adjust.

A man is pictured wearing a red tie.
U.S. President Donald Trump authorized the U.S. Department of Commerce to begin instituting a 100 per cent tariff on "any and all Movies coming into our Country that are produced in Foreign Lands," he posted on Truth Social. (Evan Vucci/AP Photo)

Gerhard says film companies are actively seeking out places like Newfoundland and Labrador given its geography, highly skilled production teams and what she called a robust package of tax incentives to attract production.

While she says tariffs would hurt larger production companies, it could become a benefit for more local productions to take the spotlight.

And like in other sectors, Gerhard added Trump's announcement already has others in the industry exploring strengthening connections with other markets like Europe and the United Kingdom.

"[Trump] is having a great impact on all of us as Canadians, and I think it's really important that we stay strong and recognize that Canadians make fantastic content," she said.

"We're not just aligned with the United States. We can be strong with our European partners, and I think that's a good message to send."

Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.

ABOUT THE AUTHOR

Alex Kennedy

Journalist

Alex Kennedy is a digital reporter with CBC Newfoundland and Labrador based in Corner Brook. He previously worked with CBC N.L. in St. John's, and has a particular interest in stories about sports and interesting people.

With files from On The Go