Trade Threat: U.S. Congress Republicans Urge Canada to Revoke Online Streaming Act

In a letter dated July 31, obtained by National Post, 18 Republican members of Congress on the House ways and means committee are urging White House officials to press Canada to revoke its Online Streaming Act, which they argue poses a substantial threat to the trade relationship. The representatives are concerned about the Act’s discriminatory provisions and the potential for additional restrictive measures, likening it to the Digital Services Tax that Canada abandoned in late June.

“The fact that the Online Streaming Act already imposes discriminatory obligations and threatens additional obligations imminently is a major threat to our cross-border digital trade relationship,” the letter states. The congress members have directed these concerns to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, urging them to address the issue with their Canadian counterparts and repeal the Act.

Greer, Bessent, and Lutnick, key players in current trade negotiations with Canada, are working towards a new trade deal that aims to alleviate U.S. tariffs on significant Canadian industries. This demand from the Republican members underscores a broader trend among influential U.S. politicians using trade talks with Canada to challenge Canadian digital policies affecting American businesses as tensions escalate in a trade war between the two countries. The pushback highlights the complexity and importance of these ongoing negotiations for both sides.