TikTok Canada Forced to Exit Arts Sponsorships as Federal Shutdown Order Takes Hold

Juno Awards, TIFF, and Indigenous Accelerator Among Sudden Losses

TikTok Canada has been forced to abruptly withdraw millions in sponsorships from major Canadian arts organizations due to a federal order requiring the company to cease operations there. The move affects partnerships with the Juno Awards, Toronto International Film Festival (TIFF), ADISQ, MusiCounts, and the National Screen Institute’s Indigenous Creator Accelerator, upending years of investment in the cultural sector.

“This is incredibly disappointing,” said Sarah Simpson-Yellowquill, program manager for the Indigenous accelerator. “TikTok has been a game-changer for our community. The support allowed nearly 400 Indigenous creators to access mentorship, training, and visibility. Losing that overnight is more than financial—it’s a huge emotional and cultural blow.”

TikTok confirmed that its Canadian office shutdown—prompted by national security concerns from the federal government—has made continued support impossible. “Programs like these don’t build themselves,” said Joshua Bloom, General Manager of TikTok Canada. “They rely on dedicated local teams, and as we are being forced to wind those teams down, we can no longer sustain our sponsorships.”

The company is challenging the order in court, arguing that it has offered transparent alternatives to meet Canada’s concerns without withdrawing entirely. “We have been willing to work collaboratively with the government, but unfortunately, we’ve received little engagement,” said Steve de Eyre, TikTok’s Director of Public Policy and Government Affairs.

TikTok’s cultural footprint in Canada has grown steadily since 2019. A Nordicity report estimates the platform’s contribution to Canadian GDP at $1.4 billion, including a $950 million boost to small business revenues last year alone.

Eve Paré, executive director of ADISQ, said the timing couldn’t be worse. “We’re now in the difficult position of seeking a new partner just months before our next gala in November. TikTok’s support helped us reach new digital audiences, particularly in Quebec’s Francophone music scene.”

While the impact in Canada is swift and definitive, TikTok’s situation in the United States offers a contrast. There, the company faces legislative pressure, but not a corporate shutdown.

In April 2024, U.S. lawmakers passed the Protecting Americans from Foreign Adversary Controlled Applications Act, giving ByteDance—TikTok’s parent company—an ultimatum to sell the platform or face a nationwide ban. That ban was initially scheduled to take effect in January 2025 but has been delayed multiple times through executive orders under President Trump, most recently pushing enforcement into mid-September 2025.

However, unlike Canada, the U.S. has not required TikTok to cease operations or dissolve its local teams. As a result, the platform’s sponsorships and marketing programs in the U.S. remain fully active, including its continued presence at entertainment events and partnerships with creators and cultural organizations.

This discrepancy has sparked criticism from Canadian digital economy advocates. A University of Ottawa law professor, Michael Geist, said, “The government has essentially ordered a corporate shutdown while leaving the app accessible. That disconnect has real consequences—especially for creators, nonprofits, and cultural institutions.”

Without a path forward for its local team, TikTok Canada said its exit from arts sponsorships is permanent.

“We’re proud of what we built here,” said Bloom. “We hope there’s a future where we can return and continue supporting Canadian creators and culture. But that won’t happen unless the government engages.”

For now, the loss is being felt across Canada’s creative sector, where TikTok’s sudden absence leaves a funding gap and a community vacuum that may take years to rebuild.