US Republicans Push for Trade Investigation into Canada’s Streaming Act

Washington – A bipartisan group of U.S. Lawmakers is escalating pressure on Canada to repeal its Online Streaming Act, alleging the legislation unfairly targets American streaming services. The move comes as trade negotiations between the two countries continue, with concerns mounting over digital trade barriers.

Bill Seeks Section 301 Investigation

Representative Lloyd Smucker (R-PA-16) introduced the “Protecting American Streaming and Innovation Act” on Thursday, March 19, 2026, which calls for the U.S. Trade Representative (USTR) to launch a Section 301 investigation into Canada’s Online Streaming Act. This investigation would determine if the Canadian law constitutes an unfair trade practice that burdens American commerce. The bill is co-sponsored by five other Republican members of the House Ways and Means subcommittee on trade.

Concerns Over Canadian Content Requirements

At the heart of the dispute is Canada’s requirement that foreign streaming services operating within the country contribute a percentage of their revenue – currently set at 5% – to funds supporting Canadian content creation. U.S. Lawmakers argue this policy is discriminatory, giving an unfair advantage to domestic Canadian streaming services. The Computer & Communications Industry Association (CCIA) estimates this forced contribution regime could cost U.S. Music and video services up to nearly $7 billion by 2030. CCIA applauds the introduction of the bill.

USMCA Implications

The lawmakers contend that the Online Streaming Act violates Canada’s commitments under the United States-Mexico-Canada Agreement (USMCA), specifically regarding market access and non-discrimination. They argue the law undermines fair competition and hinders the growth of the digital economy. A bipartisan letter from 27 members of the Committee on Ways and Means addressed to Canada-US Trade Minister Dominic LeBlanc and Canada’s Ambassador to the United States Kristen Hillman, expresses these concerns.

Past Disputes and Potential Outcomes

This isn’t the first time the U.S. Has challenged Canada’s digital policies. In 2025, U.S. Officials objected to the Online Streaming Act as discriminatory and raised the issue during trade negotiations. Previously, the Trump administration threatened to terminate trade discussions with Canada over its digital service tax, ultimately leading to its rescission. CBC News reported on these earlier disputes.

While the bill faces potential hurdles in the Senate, the USTR could launch a Section 301 investigation, potentially leading to higher tariffs on Canadian goods. The USTR has already initiated two such investigations targeting Canada and 59 other countries and has indicated further probes are possible.

Key Takeaways

• The “Protecting American Streaming and Innovation Act” seeks a Section 301 investigation into Canada’s Online Streaming Act.
• U.S. Lawmakers argue the Canadian law is discriminatory and violates USMCA commitments.
• The dispute centers on Canada’s requirement for foreign streaming services to contribute to Canadian content funds.
• Potential outcomes include tariffs on Canadian goods if the USTR finds the law constitutes an unfair trade practice.