Trump Diplomat Denounces Canada’s ‘Netflix Tax’
CRTC’s new 15% streaming obligation draws accusations of discrimination against American companies.
WASHINGTON, June 2, 2026 – A Canadian regulatory body is receiving condemnation from Washington over its recent decision to triple the levy on major online streaming services.
The levy, originally set at 5% by the Canadian Radio-television and Telecommunications Commission, directs funds from streaming services generating more than $25 million annually from Canadian subscribers toward “Canadian and indigenous content production.”
The CRTC’s latest framework raises the obligation to 15% for major online programming services, while also lowering contribution requirements for traditional Canadian broadcasters from 30–45% to 25%.
“This unfair tax will drive up costs for Canadian consumers and targets U.S. companies. This law should be immediately repealed,” said United States Ambassador to Canada Pete Hoekstra.
The CRTC argued that the levy will support programming of “exceptional importance” to Canadians.
“CRTC’s decision to triple the tax rate on leading streaming services is making a bad situation worse. CRTC is targeting and taxing U.S. companies, putting up new, discriminatory trade barriers, and worsening the investment climate for American businesses,” Hoekstra wrote in a statement on X.
