Trump Trade War With Canada Puts Local Film, TV Rules in Crosshairs

Key Points:

• The escalating trade war between the U.S. and Canada, driven by tariff disputes under President Trump, is putting Canadian content spending by major Hollywood studios at risk, particularly affecting U.S. digital streaming giants required to invest in Canadian productions under the Online Streaming Act.
• The Online Streaming Act mandates U.S. platforms like Netflix, HBO Max, and Disney+ to spend on Canadian local content, but U.S. producers have appealed the legislation, and the Trump administration has incorporated the issue into broader trade tensions with Canada.
• Canadian producers are urging the government to reinstate the Online Streaming Act's spending requirements after they were rescinded to improve trade negotiations, which ultimately failed; they argue that American companies should contribute to sustaining Canada's domestic film and TV industry.
• Canadian Prime Minister Mark Carney cited objections from U.S. negotiators to French language content rules as a cultural sovereignty issue, leading Canada to abandon trade talks and impose retaliatory tariffs, while Trump has threatened further tariffs and accused Canada of wanting U.S. state-like benefits.
• The dispute over content spending rules has broader implications, with other countries monitoring the situation as it may influence future regulations on foreign digital content providers and their obligations to support local media production.