U.S. Republicans Urge Canada to Revoke Online Streaming Act Amid Trade Negotiations

A group of 18 US Republican members of Congress have written a letter to US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, calling Canada's Online Streaming Act "discriminatory" against American companies. The act requires foreign streaming services to contribute 5% of their revenues to fund Canadian content. The Republicans argue that this is harmful to cross-border digital trade and that American streaming services are important contributors to the US economy.

A group of 18 US Republican members of Congress has written a letter to US Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent, calling Canada's Online Streaming Act "discriminatory" against American companies. The act requires foreign streaming services to contribute 5% of their revenues to fund Canadian content. The Republicans argue that this is harmful to cross-border digital trade and that American streaming services are important contributors to the US economy [1].

The letter, obtained by CBC News, was signed by members including Lloyd Smucker, Carol D. Miller, Ron Estes, and Rudy Yakym. They argue that the Canadian Radio-television and Telecommunications Commission (CRTC)'s decision to force foreign services to contribute five per cent of their revenues to government funds benefiting the creation of Canadian content is detrimental to cross-border digital trade [1].

The US economy benefits significantly from streaming services. In 2023, on-demand video revenue contributed $70 billion US to the American economy, in addition to $14.3 billion US from music streaming [1]. The letter states that American streaming services should be prioritized in ongoing negotiations with Canada as the country seeks to dismantle digital trade irritants.

This development comes amidst ongoing trade tensions between Canada and the US. In late June, Canada rescinded its digital services tax in response to US President Donald Trump's demands, which had briefly halted trade negotiations [1]. However, the negotiations failed to meet Trump's self-imposed Aug. 1 deadline, and Canadian trade representatives have displayed less optimism since the president imposed a 35% tariff on goods non-compliant with the Canada-U.S.-Mexico agreement (CUSMA).

Meanwhile, a 90-day extension of a US-China tariff truce is likely, according to US Commerce Secretary Howard Lutnick [2]. This extension, which is set to expire on Tuesday, is a likely outcome of ongoing negotiations between the two countries.

The U.S. Lumber Coalition has also criticized Canada's recent $1.2 billion subsidy package for its softwood lumber industry, accusing Canada of unfair trade practices and violating U.S. trade laws [3]. The coalition urges President Trump to respond forcefully to this latest Canadian defiance of U.S. trade laws.

References:
[1] https://www.cbc.ca/news/politics/canada-online-streaming-act-trade-1.7604639
[2] https://www.scmp.com/news/china/diplomacy/article/3321145/90-day-extension-us-china-tariff-truce-likely-us-commerce-secretary-lutnick-says?module=latest&pgtype=homepage
[3] https://www.morningstar.com/news/pr-newswire/20250808ny47614/us-lumber-coalition-us-commerce-department-takes-enforcement-steps-against-harmful-canadian-subsidies-while-canada-escalates-unfair-trade-practices-with-new-massive-12-billion-subsidy-announcement-for-canadas-lumber-industry