Canadian Prime Minister Mark Carney has pulled the plug on a regulation that would have forced U.S. streaming services like Netflix Inc. (NFLX), Amazon.com (AMZN) Prime, and The Walt Disney Company (DIS) Disney+ to pour billions into Canadian television production. The move, reported by POLITICO on Wednesday, is a win for the streaming giants and their subscribers north of the border.

Carney said the decision was driven by concerns over affordability, suggesting the levy would have led to higher subscription costs for Canadian consumers. "This is not the time to make Canadians pay another C$50 ($35.94)," Carney told the publication. That's a direct hit to the wallet for a country already grappling with inflation and cost-of-living pressures.

Canada's Liberal government announced a new policy under the Online Streaming Act that would require the broadcast regulator to revise rules, potentially reducing or eliminating contributions that U.S. streaming companies would otherwise have to make to support Canadian TV production and promotion. In other words, the government is hitting the brakes on a plan that would have forced Netflix, Amazon, and Disney to fund local content—a requirement that had been brewing for years.

The timing is interesting. The move came a day after Canada-U.S. Trade Minister Dominic LeBlanc met U.S. Trade Representative Jamieson Greer in Washington. Greer has repeatedly called the Online Streaming Act a "discriminatory measure" that "unfairly targets American tech companies." So, is this a concession in the ongoing trade war with President Donald Trump? Carney says no. "This is not tied to the current trade negotiations," he maintained. But critics aren't so sure.

Earlier this year, Canadian Culture Minister Marc Miller said the Online Streaming Act was one of the "preconditions" the Trump administration wanted addressed before broader trade talks could proceed, though he provided no further details publicly. That comment alone suggests the streaming levy was a bargaining chip in a much larger game.

Canada's broadcasting regulator, the CRTC, had recently ruled that foreign streaming companies earning more than C$25 million ($17.98 million) in Canada must allocate 15% of their revenue to support Canadian and Indigenous content production. That would have been a hefty bill for the likes of Netflix, which reportedly generates hundreds of millions in Canadian revenue. But Minister Steven Guilbeault said the government did not entirely agree with the CRTC's decision, signaling a split between the regulator and the feds.

Major U.S. streaming platforms have opposed the fee from the start. Carney also met with Netflix CEO Ted Sarandos in New York last week, though it's unclear whether the Online Streaming Act was discussed. Probably not a coincidence, though.

Notably, Canada's move comes a day after the Trump administration proposed new tariffs of 10% to 12.5% on imports from 60 economies, including Canada, citing their failure to curb trade in goods produced with forced labor. The proposed duties stem from a Section 301 investigation by the U.S. Trade Representative's office. So, while Carney says the streaming levy decision isn't about trade, the timing sure makes it look like a peace offering.

For investors, this is a clear positive for Netflix, Amazon, and Disney. The avoided levy removes a significant cost burden and potential price hike for Canadian subscribers. It also removes a regulatory overhang that had been hanging over these stocks. The trade war, however, is far from over, and tariffs remain a threat. But for now, the streaming giants can breathe a little easier.