For right or wrong, and even if it continues to make everyone south of the Rio Grande mad, you'll likely never hear someone from the US refer to anyone outside of US borders as "American" without putting some sort of qualifying adjective - like Latin, Central, South - in front of it. Otherwise, I believe Canadians are happy being Canadians and would prefer not to be confused with their crazy neighbor.
In the case it is not officially required to capitalize, I would still suggest it, because it makes it clear it is a specific term/title and not just used as a word itself, so pre-war. That way people can't really complain. (like if you read The Book, you can't complain the answer is the bible instead of a random book )
Sadly people have been killing each other over things a lot more trivial than that here in Northern Ireland, for far far too long. Thankfully now, most people have had enough and want to get on with their lives.
And it's actually the common spelling in German.
Imagine if quiz shows on TV asked contestants to spell everything they gave as a verbal answer.
The Vikings did not come from France.