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Globe says Carney caves to Trump, will drop Netflix tax

2026-07-30 07:38 ET - In the News

See In the News (C-NFLX) Netflix CDR (CAD Hedged)

The Globe and Mail reports in its Thursday edition that Prime Minister Mark Carney is planning to scrap a 5-per-cent tax on on-line streaming services such as Netflix and Amazon Prime, the latest in a series of concessions to U.S. trade demands for which Canada has not received anything in return. A triple bylined item led by Adrian Morrow says the tax would support the creation of Canadian television, movie and music content. A government lawyer wrote in a July 17 court document that Ottawa intends to "eliminate" the levy. The decision only came to light this week when The Wire Report, a telecom industry news website, obtained a copy of the lawyer's letter. It follows Culture Minister Marc Miller's June order that the federal broadcast regulator review its decision to increase the tax to 15 per cent. The Prime Minister insisted on Wednesday that the policy U-turn was about keeping streaming services affordable. The Online Streaming Act has been frequently cited by the U.S. government as a top trade irritant. Canada is aiming to avoid U.S. President Donald Trump imposing his latest round of tariffs, as well as to reach a deal to lower or eliminate his previously imposed levies on autos, metals and other goods.

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