AUSTIN, Texas — Billboard Canada reports that the Canadian Independent Music Association has called off its Canada House event at South by Southwest due to escalating political and economic issues between Canada and the U.S.

Canadian imports will face a 25% tariff as of March 12. The implementation of tariffs overlaps with the South by Southwest festival (March 7-15).

Canada House has been an opportunity for Canadian bands and artists to perform at an American music festival for more than a decade.

“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,” said a South by Southwest spokesperson.

"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," Telefilm told Spectrum News. "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."

Four Canadian and indigenous musical groups received invitations to perform at the Canada House showcase, according to Billboard Canada.

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