SXSW 2025: Canada House event canceled amid tension between Canada, U.S.

AUSTIN, Texas - An annual staple of South by Southwest has canceled its appearance at the 2025 festival amid tension between the United States and its neighbor to the north.

The organizers of Canada House have decided to cancel the annual networking space, according to The Canadian Press. Canada House does not appear on the SXSW 2025 online schedule.

What we know:

Canada House has taken over Swan Dive on Red River Street for more than a decade, offering Canadian musicians and entrepreneurs opportunities to meet and make connections with members of the local and international music industry attending the annual conference and festival in Austin.

According to David Friend of The Canadian Press, Telefilm said in a statement it had decided to cancel the annual event this year but didn't provide a reason or respond to questions for comment.

Telefilm later told FOX 7 Austin that the cancelation was due to "the withdrawal of key financial partners."

"Through the Canada House, Telefilm relies on partnerships to ensure financial viability. Unfortunately, due to the withdrawal of key financial partners, we have had to make the difficult decision to pause the Canada House, as we could not sustain the same level of investments," part of their statement read.

Telefilm's cancelation came after the Canadian Independent Music Association (CIMA) canceled their one-day music showcase at Canada House due to many factors, mostly related to the current relationship between the U.S. and Canada, according to Billboard Canada. 

CIMA informed its artists about their cancelation on Feb. 13, almost a full month before their planned March 12 event, says CBC.

What they're saying:

"The growing instability of everything in the United States right now, plus the high cost [of putting on events in the United States] and the low [Canadian] dollar – all of these things combined made it so we couldn’t feel confident or good about what we were getting ourselves into at this particular moment," CIMA's president and CEO Andrew Cash told Billboard Canada.

"The timing is not great," he continued. "We would be going down there just after the 30-day tariff pause has expired. We're going to have a new Prime Minister [in Canada, following the resignation of Justin Trudeau]. I just didn't feel comfortable putting CIMA out there in that context of instability."

SXSW provided a statement to FOX 7 Austin about CIMA's cancellation, saying:

"We’re disappointed that the Canadian Independent Music Association will be unable to join us at SXSW, but we look forward to robust and exciting participation from several businesses, artists, and filmmakers from Canada."

Telefilm Canada also provided a statement to FOX 7 Austin on canceling Canada House:

"Telefilm Canada values its longstanding relationship with SXSW in Austin, Texas, and we recognize its role in fostering innovation and supporting the creative sector. We believe it is essential for us to maintain a presence at this important festival. 

"Through the Canada House, Telefilm relies on partnerships to ensure financial viability. Unfortunately, due to the withdrawal of key financial partners, we have had to make the difficult decision to pause the Canada House, as we could not sustain the same level of investments.

"That said, Telefilm remains committed to championing Canadian talent and celebrating their achievements at SXSW. We will continue to be present, supporting Canadian teams whose films/projects are selected, and engaging with the industry at the Canadian Innovation Lounge."

Canada-US tensions

Big picture view:

Tensions have been high between Canada and the United States since President Donald Trump took office again in January.

Trump has repeatedly said that Canada should become the 51st state, a proposal that is deeply unpopular among Canadians. The president has also threatened tariffs on Canadian imports and energy products.

Tariffs were initially set to go into effect in early February, but were paused for 30 days after Canadian Prime Minister Justin Trudeau said that on a call with Trump that he pledged additional cooperation on border security and fentanyl trafficking. Mexico was threatened as well, but those tariffs were also paused.

Those tariffs could go into effect as soon as March 4, says CTV News, which reports that Canada's Public Safety Minister David McGuinty says he has been given no assurances that the country can avoid the tariffs despite those pledged efforts. 

Billboard Canada, however, says that the tariffs are set to kick in on March 12, which would fall right in the middle of SXSW's 2025 festival.

What's next:

Canada is still well-represented on SXSW's 2025 schedule, with panels, performers, and events, including the Canadian Innovation Lounge at the Fairmont Hotel, which is also sponsored by Telefilm.

CBC says that almost 40 Canadians are still booked to perform at various venues during the festival.

FOX 7 Austin has reached out to CIMA for comment.