A Weakening U.S. Dollar Worries Film and TV Producers In Canada

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For years, Canada’s film industry has attracted American movie and TV production companies due to significant cost advantages stemming from the lower value of the Canadian dollar relative to the U.S. dollar.

In early 2025, the American dollar is predicted to depreciate by approximately 3 cents or 5 percent compared to the Canadian loonie, primarily due to Trump’s global trade war turmoil. This unexpected trend has sparked concern, as it could potentially attract more American film producers to Canada, thanks to potential manipulation of their film tax credits. However, Daniel Bekerman, a Vancouver-based independent producer of the Donald Trump film “The Apprentice”, believes that controlling the currency isn’t the best strategy for Canada in this scenario.

Currently, the situation isn’t hurting my business, but significant alterations in currency could potentially bring about changes, asserts Bekerman. This year alone, he has managed to produce five films in Vancouver, among which are “Clown in a Cornfield” directed by Eli Craig and “The Wedding Banquet,” starring Bowen Yang and Lily Gladstone, written jointly by director Andrew Ahn, James Schamus, and Ang Lee.

As a gamer, I can handle a bit of less game development happening in my neighborhood, but only if the value of American dollars doesn’t keep falling. There’s some wiggle room, some flexibility, but there’s a limit. I don’t think we’ve hit that point yet, or even close to it. But it’s out there, and it’s something to be mindful of. Bekerman is warning us about it.

Navigating currency challenges highlights an aspect of the Canadian entertainment industry that, while undergoing significant transformations in the global market, continues to lean heavily on U.S. studios and streaming platforms for work opportunities. Previously, the industry has experienced reductions in Hollywood investment, such as during the period when the Canadian dollar was equal to the U.S. dollar in 2007 and 2008, as well as due to production halts brought on by the pandemic, the 2023 Hollywood strikes, and other industry-specific challenges.

This time seems distinct due to the North American monetary situation, which appears to be influenced more by a weakening US dollar rather than a strong Canadian loonie. This shift, driven by Trump’s unpredictable trade policies, could potentially lead to persistent issues in the future. Furthermore, Trump’s inconsistent messages about the U.S. dollar as the global reserve currency may place Canada in a precarious position, as other international regions also face similar foreign exchange vulnerabilities. In essence, Canada might serve as an early warning sign of potential problems in these jurisdictions.

According to Nicholas Tabarrok from Darius Films, a film company based in both Los Angeles and Toronto, he’s less affected by currency fluctuations because his work doesn’t involve providing services abroad, often referred to as “Canadians acting as hired guns for U.S. projects produced in Canada on contract, while the Americans retain ownership rights.

Tabarrok notes that his part of the business, making and producing films, doesn’t depend on a strong currency. He suggests that, indeed, a weaker US dollar could lead to fewer American productions shooting in Canada. However, some view this as an opportunity since production hubs like Vancouver and Toronto can still provide local talent, crews, and locations for Hollywood, which can result in popular primetime TV shows and box office hits.

Roma Roth, the head producer and executive of the CTV and Fremantle show “Sullivan’s Crossing”, believes that American producers who feel they aren’t receiving enough value for their investment in Canada might opt to collaborate with Canadian production companies to bridge any financial disparities.

Although it’s been observed that a weaker Canadian dollar has traditionally given U.S. budgets more purchasing power, a stronger Canadian dollar today can have its benefits, especially as American film studios and producers are looking for co-financing to lessen financial risk. In such instances, a healthier Canadian dollar results in a greater Canadian investment towards the overall budget, according to Roth, who is also an executive producer on Netflix’s Virgin River series.

Some people believe that there is less job opportunities for local American workers due to currency fluctuations, and emerging filmmakers and producers may find it difficult to compete with more established peers.

In the realm of lower-budget TV films and independent projects, I’ve observed a decline in U.S. production work flowing into Vancouver this year, noted Canadian director Panta Mosleh, who frequently works for networks like Hallmark, A&E, and Lifetime and splits her time between Los Angeles and Vancouver due to her dual status. She attributes this trend largely to the diminishing influence of the exchange rate, which had previously been a significant factor, but is now having a tangible effect on the industry.

Mosleh points out that film tax credits and infrastructure in Canada continue to draw American producers, but a more tightened exchange rate has diminished budgets and limited access to development financing. To adapt to currency fluctuations, Mosleh is pursuing co-production financing from Europe and the Middle East to launch her own original projects.

Following her victory at the Red Sea Film Festival, where she received the Golden Yusr award and a $25,000 prize for her short film, as well as learning that they offered $100,000 for the feature film category – it was both thrilling and astounding. This confirmed the surge of energy and investment in the Saudi film industry. The enthusiasm for international partnerships is palpable, and she expresses her hope to collaborate with regional producers on future projects.

Marnie Gee, the Film Commissioner of British Columbia at Creative B.C., emphasizes that while fluctuations in currency can be a consideration for U.S. film producers when choosing locations, factors like film tax incentives, local talent, and infrastructure are equally significant. In other words, when making the decision to shoot in Canada or abroad, these elements hold just as much weight.

Although changes in exchange rates have reduced British Columbia’s historical currency advantage to some extent, the province continues to be an attractive and valuable production partner when considering all aspects. British Columbia boasts top-tier crews, a reliable and consistent business climate, and a globally recognized industry that works collaboratively as a full service provider,” Gee emphasizes.

In March 2025, the British Columbia provincial government increased the production services tax credit for foreign producers from 28% to 36%, and introduced a new tax credit for the local production costs of tentpole or major series that surpass CAN$200 million (US$146 million), in order to stay competitive with other jurisdictions.

Canadian creative talent and film crews continue to demonstrate resilience amidst recent upheavals in the Hollywood industry. For instance, film composer Mark Koven has established a robust career in horror films right here in Toronto. His work includes scores for movies like The Lighthouse, The Witch, and 2024’s The First Omen.

While working with filmmakers to generate eerie and alien sounds that build suspense for horror films, Koven manages to avoid worrying about currency exchange rates. He clarifies his role as being creative, stating this while he’s currently composing scores for two MGM+ projects: the third season of Billy the Kid and the premiere season of The Institute.

After this, Ari Wise, the proprietor and head of the Core Music Agency (which manages composers for films, TV shows, and video games), will negotiate contract details with lawyers and producers from American studios. Koven explains that having a separate business division helps him stay focused on creativity. He emphasizes the significance of maintaining a purely creative bond between himself as a composer and the filmmaker.

For Wise, it’s been observed that Hollywood frequently heads up north, leveraging regional tax incentives and skilled workforce, which includes musicians he manages. He perceives the added benefit of a lower Canadian currency as an attractive “cherry on top” for these industry professionals.

Although the effects of a weaker U.S. dollar might not be noticeable for Canadian film composers until around 2026, Wise acknowledges the possibility of substantial repercussions in the future. “If the U.S. dollar continues to depreciate significantly and approaches equal value, this could undoubtedly influence the industry, as the financial aspect is always crucial,” he suggests.

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2025-07-21 17:55