While broadcast and other Canadian media haven’t specifically been targeted by Trump’s tariffs, the Digital Services Tax (DST) remains in the crosshairs.
“The Trump administration is still targeting the DST along with other Canadian policy that has been cited in the USTR’s 2025 National Trade Estimate Report on Foreign Trade Barriers released ahead of the tariff announcements as irritants,” Sonia Carreno, president of the Interactive Advertising Bureau of Canada (IAB) tells MiC.
The U.S. has been frustrated by the DST since it was introduced in June 2024. The tax imposes a 3% levy on gross revenues tied to online marketplaces, targeted advertising, social platforms, and user data – retroactive to January 1, 2022. The U.S. has requested dispute settlement consultations with Canada under the CUSMA (Canada-U.S.-Mexico Agreement) regarding the DST.
In response to the tariff announcements on April 2, the IAB stated that the industry isn’t out of the woods yet. Several issues remain of particular concern to the sector in terms of Canada’s relationship with the U.S.
These issues include the Online Streaming Act (April 2023), which the U.S. claims also likely breaches CUSMA obligations. That was followed, in June 2024, by the CRTC’s ruling that streaming services must contribute 5% of their Canadian revenues to the domestic broadcasting system starting in the 2024 – 2025 broadcast year and is set to provide an estimated $200 million per year in new funding. Again, the U.S. government believes this policy potentially violates CUSMA obligations.
The Online News Act, passed in June 2023, is also under scrutiny. It requires designated digital platforms to negotiate and compensate Canadian news outlets for linking to their content. The U.S. government is concerned that the CRTC’s regulations on news content and eligibility may impact freedom of the press and platform operations.
According to the IAB, these issues have “potential for retaliatory tariffs or further trade friction [that] could introduce significant operational and financial challenges for platforms and businesses engaged in the Canadian digital advertising ecosystem – especially those reliant on cross-border data flows, content distribution, or U.S.-based digital platforms.”
IAB Canada says it continues to monitor the situation and keep its members informed of further developments and potential advocacy opportunities.
