Trump tariffs create ‘climate of uncertainty’

Live music executives in Canada have warned the touring industry faces a “climate of uncertainty” due to Donald Trump’s trade tariffs.

The US president imposed sweeping tariff hikes on Canada and Mexico last week, although some have been paused until 2 April. He also raised levies on Chinese imports to 20%.

Trump, who has called for Canada to become America’s 51st state, previously said he was taking action “to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country”.

A 25% tax on steel and aluminium products from all countries was imposed last week, with Canada and the EU both announcing retaliatory tariffs in the developing trade war.

Speaking to reporters aboard Air Force One, Trump said 2 April would be a “liberating day” for the US, with a new wave of levies to be introduced.

“It’s going to be reciprocal — in other words, whatever they’re charging, we’re charging,” he said. “Then in addition to that, on autos, on steel, on aluminium, we’re going to have some additional tariffs.”

“The current tariff war will create a climate of uncertainty for venues in the United States who hire artists”

Amid the ever-changing situation, Robert Baird, president of Toronto-based BAM! Baird Artists Management Consulting, advises on the likely consequences for live music.

“The current tariff war will create a climate of uncertainty for venues in the United States who hire artists: their funding may be in jeopardy and their clientele may be diminished simply because people will have less discretionary income,” he tells IQ. “A depressed economy due to the tariff will not allow for the flourishing of live performing arts.”

A former president of North American Performing Arts Managers and Agents (NAPAMA), Baird also points to potential additional hurdles for international touring acts.

“I am concerned that there may be additional rules coming which would limit the entry of foreign artists into the United States, whether by increasing the costs of work permits or putting increasing impediments on the entry visa process,” he adds.

“We could see increased costs for goods and materials such as building materials, technology, food and beverage, and merchandise”

Chris May, general manager of Vancouver’s BC Place stadium, which has hosted acts such as Coldplay, Ed Sheeran and U2, as well as the finale of Taylor Swift’s Eras Tour, breaks down some of the more granular implications.

“The potential impacts of tariffs on the live events industry will depend on each venue or company’s specific operations,” he says. “However, as with many industries, we could see increased costs for goods and materials such as building materials, technology, food and beverage, and merchandise.

“Fortunately, BC Place has always prioritised working with Canadian suppliers whenever possible, which puts us in a strong position to mitigate the effects of tariffs and limit any associated cost increases.”

May offers his thoughts on how the situation could play out from here – both for better and for worse.

“BC Place is thankful to have strong relationships with many Canadian partners and suppliers, and we remain committed to supporting the local economy,” he notes. “However, the worst-case scenario would involve a decline in tourism to British Columbia, which could result in fewer visitors for events, especially those travelling from the US. Depending on the event, many of our attendees come from south of the border, contributing not only to our ticket sales but also to the local economy.

“While it’s difficult to predict how things will unfold, we remain optimistic and committed to maintaining BC Place as an open, inclusive space. We look forward to continuing to welcome our friends from the US and showcasing the beauty of our province.”

“The past few years have shown us how resilient and adaptable our industry can be in the face of global uncertainty”

BC Place is gearing up to welcome AC/DC next month in advance of a multi-night run by Canadian homegrown hero The Weeknd this July, and May is determined not the let the outside issues distract from the venue’s core focus.

“Our goal of providing exceptional experiences for our guests and continuing to host world-class events remains the same,” he tells IQ. “While tariffs may present some challenges, our team is proactively working on solutions to ensure we continue delivering value for both our fans and partners.

“The past few years have shown us how resilient and adaptable our industry can be in the face of global uncertainty, and we have come out the other side stronger. BC Place’s commitment to overcoming challenges and evolving with the changing landscape has always been key to our success, and we’re confident that we’ll continue to thrive despite any external challenges.”

The Paris-based Organisation for Economic Co-operation and Development (OECD) today (17 March) published its latest Interim Economic Outlook. It projects the tariffs will lead to global growth slowing to 3.1% in 2025 and 3% in 2026, while revising its inflation forecast upwards by 0.3 percentage points to 3.8%, compared to its Economic Outlook in December.

Due to being hardest hit by the tariffs, the impact on Canada and Mexico is expected to be the most substantial, with the OECD now predicting Canada’s economy to expand by 0.7% this year and next, down from the previous forecast of 2% for both years.

Meanwhile, Mexico is projected to contract by 1.3% this year and a further 0.6% in 2026, having previously been expected to grow by 1.2% and 1.6%, respectively.

The US’ forecast has also been downgraded to 2.2% for 2025 and 1.6% for 2026, compared to 2.4% and 2.1% in the last outlook.

“The global economy has shown some real resilience, with growth remaining steady and inflation moving downwards. However, some signs of weakness have emerged, driven by heightened policy uncertainty,” says OECD secretary-general Mathias Cormann. “Increasing trade restrictions will contribute to higher costs both for production and consumption. It remains essential to ensure a well-functioning, rules-based international trading system and to keep markets open.”

“Today’s political reality creates an opportunity for our industry to help lead through these turbulent times”

Canadian Live Music Association (CLMA) president and CEO Erin Benjamin says the trade war is quickly raising significant concerns within Canada’s live music industry.

“Tariffs are expected to have multiple direct and indirect impacts on live music businesses and organisations, including increased operational costs,” she says.

“Today, one of the greatest worries – which has broad economic implications – is that the trade war will lead to decreased overall consumer spending on entertainment, affecting ticket sales and attendance at live events.”

However, Benjamin is keen to accentuate the positives amid the ongoing uncertainty.

“These three things are as true today as they ever have been – Canada’s live music industry is a cultural and economic powerhouse, our incredible home-grown artists embody the essence of Canadian identity, and, concerts have always meant positive impact for tourism, job creation, artist development, and economic growth,” she says.

Benjamin references the CLMA’s public awareness campaign, #CanadaIsLiveMusic, which was recently launched “to better highlight the potential for growth our sector represents”.

“Today’s political reality creates an opportunity for our industry to help lead through these turbulent times,” she continues. “With new, compelling economic data in hand, #CanadaIsLiveMusic sends a strong signal that our industry is more than ready to be an even stronger catalyst for, and champion of, a resilient Canadian economy.”

In closing, Benjamin extends a warm welcome to Canada’s new prime minister and Liberal Party leader Mark Carney, who succeeded Justin Trudeau as PM earlier this month.

“The CLMA welcomes Mr Mark Carney as the new leader of the Liberal Party, and looks forward to working with all political parties to harness the true power of live music, creating a legacy of cultural vibrancy, increasing jobs, economic resilience, and community connection for generations to come,” she finishes.

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