As of late January 2026, the United States has reportedly made the treatment of American tech giants — particularly Google and Meta (Facebook) a central condition in ongoing trade negotiations with Canada. Under the Trump administration, Washington is pressuring Ottawa to amend or repeal key digital regulations that it views as discriminatory toward U.S. companies, turning tech policy into one of the most contentious elements of North American trade relations.
Online News Act (Bill C-18): A Core Dispute
At the center of the dispute is Canada’s Online News Act, passed in 2023, which requires major digital platforms to compensate Canadian news organizations for hosting and sharing their content. In response, Meta blocked news access across Facebook and Instagram in Canada, while Google agreed to contribute $100 million annually to an industry fund.
The U.S. government has labeled the law an unfair targeting of American companies. Bipartisan members of Congress have urged Canada to roll back or significantly amend the legislation, arguing it violates trade principles. Canadian officials are now reportedly in preliminary talks with Meta to restore news content, signaling potential flexibility to keep trade negotiations moving.
Online Streaming Act (Bill C-11): Cultural Policy vs. Trade Pressure
Another major flashpoint is Canada’s Online Streaming Act, which requires foreign streaming platforms like Netflix, Disney+, and Amazon Prime Video to contribute a portion of their Canadian revenues to support domestic cultural content. While Ottawa views this as necessary to protect Canadian media, Washington considers it discriminatory against U.S.-based service providers.
Canadian broadcasting groups have warned that if the law is weakened or scrapped under U.S. pressure, local stations could face closures, putting jobs and cultural production at risk.
Digital Services Tax: The Deal Breaker That Almost Ended Talks
Tensions escalated further in June 2025 when Canada proposed a 3% Digital Services Tax on revenues earned by online marketplaces, social networks, and search engines including Google and Meta. The Trump administration called the tax a “blatant attack” on American companies and immediately halted trade talks. Canada later rescinded the tax to revive negotiations.
Broader Trade Implications Under USMCA
These disputes are unfolding amid high-stakes renegotiations of the United States-Mexico-Canada Agreement (USMCA). President Trump has further raised pressure by threatening a 100% tariff on Canadian goods if Canada pursues independent trade agreements with China, underscoring Washington’s demand for closer economic alignment.
Why This Matters
The outcome of these negotiations could reshape how governments regulate global tech giants and redefine the balance between national digital sovereignty and international trade obligations. For Canada, the challenge lies in defending cultural and media policy goals without jeopardizing its most critical trading relationship.
