What the US Trade Talks Collapse Means for Netflix in Canada

Canada’s trade negotiations with the U.S. fell apart Friday night over rules requiring American streaming platforms to promote Canadian content, and the two governments are now openly disputing what the demand actually was.

Prime Minister Mark Carney confirmed Monday that U.S. negotiators introduced an unexpected demand hours before talks broke down, asking Ottawa to rework laws requiring major American streamers to make Canadian content, including French-language content, easy to find in Canada.

Ottawa rejected it as a threat to Canadian culture and sovereignty. Carney said U.S. negotiators regarded the French language, Francophone culture and Canadian culture as irritants, while to Canadians they are fundamental rights.

Washington tells it differently. U.S. Trade Representative Jamieson Greer told CNBC that Carney’s account was a “funny, fake story,” saying the demand was about Netflix, basically.

Trump went further Tuesday morning on Truth Social. “I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing,” he wrote. “This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!”

He did name what bothers him, saying he objects to Canada’s federal government requiring American tech companies to hand a percentage of their earnings to competitors.

Neither government has released the text of the demand, so this comes down to competing characterizations of the same request. Both sides agree streaming obligations were the breaking point.

The post landed the same morning Trump floated renaming Lake Ontario to “Lake America,” which was likely in response to Premier Doug Ford telling the President to “kiss my ass” multiple times on Monday.

Folks, we’re going to run out of popcorn at this rate. Who’s better at ragebaiting the other right now?

But some Canadian media groups say the collapse of talks may bring streamers back to the table, since they can no longer count on Washington to get the Online Streaming Act scrapped, according to The Globe and Mail.

The CRTC published a framework in May requiring large streamers to put 15% (up from 5%) of their Canadian revenue toward Canadian content, tripling the old figure. Ottawa said in June it would direct the regulator to reconsider, and industry groups have been pushing back ever since.

For viewers, the Canadian content rows in Netflix and Prime Video aren’t going anywhere. What’s unsettled is how much these platforms will have to spend making Canadian shows, and that fight now runs through the CRTC rather than a trade table.

The collapse triggered 50% U.S. tariffs on roughly $20 billion in Canadian goods. Canada is matching them dollar for dollar starting September 8. How far up are your elbows right now?

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Test
Test
1 hour ago

In terms of streaming, seems like it’s mostly over forcing the US streamers to fund Canadian (i.e. French) content.

Test
Test
1 hour ago

More interesting would be to evaluate what Carney’s new 50% tariffs will do to smartphones. Will it only affects US brands, like Apple and Google or will Samsung also be affected?

Sukiszoze
Sukiszoze
Reply to  Test
12 minutes ago

Smartphones are made in China, so I would assume these phones come directly from China to Canada, rather than going to the US first and then to Canada.

erth
erth
3 seconds ago

I buy streaming so i don’t have to watch CanCon. The CRTC has been ruining everything video based for decades. When will they just go away.

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