This is not news for non-us citizens driving in the USA. (non commercial)
There is a multilateral treaty where you have a permit document, with your picture affixed, you carry with your standard DL. It is good in most countries AS LONG AS you have a valid DL in place of origin.
This is moure about selling CAA memberships.
AAA membership gets you the permit document for free. (AND pictures if you have an enhanced membership.)
Follow the money.
There’s a similar rule for pilots. My Canadian licence allows me to fly a Canadian-registered aircraft anywhere in the world, but I had to get an FAA certificate to rent aircraft in the USA. My certificate specifies that it’s only valid with my Canadian licence.