Canadas film industry has long had American studios and streamers headed north to shoot movies and TV originals on the strength of generous currency savings from a low Canadian dollar compared to the U.S. greenback.

So the American dollar so far in 2025 falling in value by around 3 cents, or 5 percent, against the Canadian loonie due to the chaos around Trumps global trade war is suddenly raising red flags as trends shift. Daniel Bekerman, the Vancouver-based indie producer of the Donald Trump film The Apprentice, argues Canada can control its all-important film tax credits to also entice American producers north, but not its currency. At the moment, its not negatively affecting my business. That could change with more radical shifts in the currency, says Bekerman, who has produced five movies in Vancouver so far this year, including director Eli Craigs Clown in a Cornfield and The Wedding Banquet, which stars Bowen Yang and Lily Gladstone and is co-written by director Andrew Ahn, James Schamus and Ang Lee.

The busy Canadian producer adds he personally could survive less American production in his backyard, but not if the American dollar continues to plunge in value. Theres room for play, room for fluctuation, but theres a breaking point. I dont think were near that, or even approaching it. But it does exist, Bekerman warns.

Dealing with currency woes reveals a Canadianindustry that, as it grapples with the impact of deepening strategic shifts in the global entertainment industry, remains heavily dependent on U.S. majors and streamers bringing work north. Of course, the Canadian industry has seen earlier pullbacks in Hollywood production expenditures, including around the Canadian loonie trading at par with the American greenback in 2007 and 2008 and due to industry shutdowns at the height of the pandemic and around the 2023 Hollywood strikes.

But this time feels different as a North American monetary scenario underpinned more by U.S. dollar weakness than loonie strength caused by Trumps chaotic trade policies could spell lasting trouble down the road. And Trump giving mixed signals about supporting the U.S. dollar as the worlds reserve currency could leave Canada as the canary in the coalmine as other international jurisdictions also share foreign exchange exposure.

Nicholas Tabarrok of Darius Films, a film production house with offices in Los Angeles and Toronto, says hes less impacted by exchange rate fluctuations as he does not do foreign service work, a term for a gun-for-hire Canadians helping produce U.S. projects in Canada for a fee, and with the Americans retaining ownership rights.

So my side of the business, developing and creating my own films, doesnt rely on a low dollar. I would assume that, yes, the weaker US dollar is going to reduce the amount of U.S. productions coming to Canada to shoot, Tabarrok observes. Others see opportunity from a lower American dollar as production hubs in Vancouver and Toronto continue to offer local talent, crews and locations to help make primetime TV and box office draws for Hollywood.

Roma Roth, showrunner and executive producer of the CTV and Fremantle seriesSullivans Crossing, argues U.S. producers getting less of a bang for their buck in Canada may look to partner with Canadian producers to close any budget gap.

While its true that a lower Canadian dollar has historically allowed U.S. budgets to stretch further, a stronger Canadian dollar can also offer advantages, particularly in todays environment, where American studios and producers are actively seeking co-financing to reduce financial risk. In those cases, a more robust Canadian dollartranslates into a more meaningful Canadian contribution to the overall budget, Roth, who also executive produces Netflixs Virgin River series, argues.

Still others see less work and less opportunity for local American work from currency fluctuations, especially for emerging directors and producers possibly shouldered aside by more established rivals.

Especially in the lower budget TV movie and indie space, Ive noticed a slowdown in U.S. service work coming into Vancouver this year. The exchange rate used to be a major incentive, but with that shrinking, its had a real impact, in-demand Canadian director Panta Mosleh, who has directed TV movies for Hallmark, AE and Lifetime and splits her time between Los Angeles and Vancouver as she has dual status, reports.

Film tax credits and infrastructure still make Canada attractive to American producers, Mosleh adds, but a tighter exchange rate has reduced budgets and access to development financing. To pivot amid currency shifts, Mosleh is chasing co-production financing in Europe and the Middle East to get her own original projects off the ground.

After attending the Red Sea Film Festival and winning the Golden Yusr award, which came with a $25,000 winning prize for a short film, and seeing they gave out $100,000 for the feature film category, that was insane and cool at the same time. I saw how much energy and investment is flowing into the Saudi film space. Theres a genuine appetite for cross border collaboration, and Im hoping to partner with producers in the region on future projects, she adds.

Marnie Gee, the British Columbia Film Commissioner at Creative B.C., which markets the province to Hollywood as a destination for location shooting, argues currency swings are only one factor U.S. producers weigh when deciding whether to head north or anywhere internationally, with film tax credits, local talent and infrastructure being others.

While recent exchange rate changes have narrowed B.C.s traditional currency advantage, the province remains a competitive and valuable production partner when assessed holistically. B.C. offers world-class crews, a stable and dependable business environment, and a globally respected, collaborative, full-service industry, Gee insists.

To remain competitive with rival jurisdictions, the B.C. provincial government in March 2025 raised the production services tax credit for foreign producers from 28 percentto36 percent, and launched a new tax credits for tentpole or major series local production costs that exceed CAN$200million (US$146 million).

The resilience of Canadian creative talent and crews in the face of recent industry shocks out of Hollywood also persists. Film composer Mark Koven has built a strong career in the horror genre out of Toronto with scores for films like The Lighthouse, The Witch and 2024s The First Omen.

So as he collaborates with filmmakers to create strange and otherworldly sounds to spark high tension in horror pics, Koven keeps thoughts of foreign exchange fluctuations at bay. Im in the creative end of things, he explains while currently scoring two MGM+ productions: the third season of Billy the Kid and the first season of The Institute.

That leaves his agent, Ari Wise, owner and director of the Core Music Agency, which represents film, TV and game composers, to hammer out contract terms with American studio lawyers and producers. Its important to have that division, so I dont get too distracted by the business. The creative relationship between myself as a composer and the filmmaker must be a purely creative relationship, Koven says.

For Wise, Hollywood has kept coming north to take advantage of local tax credits and talent, including composers he represents, and he sees the bonus they get from a low Canadian dollar as the icing on the cake for them.

But while the impact of a weaker American dollar isnt likely to be felt by Canadian film composers until well into 2026, Wise does accept the potential for significant fallout down the road. If the American dollar does continue to go down even further, the more we reach parity, that could affect the industry, of course, because the bottom line is always a factor, he argues.