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GOP Bill Targets Canada’s Online Streaming Act, Seeks Section 301 Probe and Possible Tariffs

Major U.S. studios back the move, calling Canada’s five percent streamer levy discriminatory.

The U.S. Capitol is shown in Washington, D.C., this week. A Republican member of the U.S. House of Representatives introduced a bill on Thursday that he says is designed 'to counter Canada's digital trade barriers targeting American streaming companies and content producers.'
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WASHINGTON, DC - MARCH 17: Dogwoods bloom around the U.S. Capitol Building on March 17, 2026 in Washington, DC. The Senate is expected to begin debate on President Donald Trump’s top legislative priority, the SAVE America Act, which requires ID and proof of citizenship to vote in federal elections. (Photo by Heather Diehl/Getty Images)
A person browses a television menu showing icons for streaming services Netflix and Amazon Prime in a photo illustration made in Toronto on Friday, March 22, 2024. THE CANADIAN PRESS/Giordano Ciampini

Overview

  • Rep. Lloyd Smucker introduced the Protecting American Streaming and Innovation Act to direct the U.S. Trade Representative to investigate Canada’s policy under Section 301.
  • If discrimination is found, the bill authorizes retaliatory actions such as new tariffs or the suspension, withdrawal, or modification of USMCA/CUSMA benefits for Canada.
  • Canada’s 2023 law empowers the CRTC to require platforms with at least $25 million in Canadian revenue to contribute five percent to funds supporting Canadian content, projected at roughly $200 million annually.
  • Implementation of the levy and related disclosure rules is paused as the regulator finalizes definitions and legal challenges from U.S. streamers and industry groups proceed.
  • The Motion Picture Association and Digital Media Association praised the U.S. bill, while Canadian broadcast leaders warn that abandoning the policy under U.S. pressure would harm domestic cultural sectors.