Hub Podcasts Trump's movie madness
May 6, 2025
Joseph Steinberg, an Associate Professor of Economics at the University of Toronto, dives into President Trump's proposed tariffs on foreign films and their implications for Canada's film industry. He discusses how government subsidies have spurred Canada's production boom and the economic rationale behind them. Steinberg also explores the disruptive effects of movie productions on local communities and critiques the potential downsides of reducing these subsidies, highlighting the complexities of trade negotiations with the U.S.
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Trump's Tariffs Aim to Reshore Movies
- Trump's proposed 100% tariffs on movies aim to shift production back to the U.S.
- Similar to tariffs on steel and cars, it's about bringing economic activity home.
Film Subsidies Spark Global Race
- Canada uses large subsidies, up to 40%, to attract movie production.
- U.S. states like Georgia also offer significant subsidies, sparking escalating competition.
Subsidies Distort Film Markets
- Subsidies distort the film production market, favoring locations with generous incentives.
- This undermines natural efficiency where production should be driven by cost-effectiveness.