The United States Embassy in Ottawa says it has concerns over Bill C-11, the federal Liberals' online streaming act.
Molly Sanchez Crowe, a spokeswoman for the embassy, says the proposed law could discriminate against American businesses and affect digital streaming services.
Crowe says the embassy is consulting with American companies about the law, which is awaiting a final vote in the Senate.
The bill aims to update Canada's broadcasting law to reflect online streaming platforms such as YouTube, Spotify and Netflix, and would require them to help create and promote Canadian content.
America's trade representative has expressed concerns about the proposed law, but the U.S. has not said whether it would dispute it under the Canada-United States-Mexico free-trade agreement.
International Trade Minister Mary Ng has said that the online streaming act in is line with Canada's trade obligations.