Trump has directed US officials to identify Canadian-origin goods that could be removed from federal civilian procurement, escalating a trade dispute over Canada’s “Buy Canadian” policies, provincial procurement restrictions, and US concerns about access to Canadian government contracts.
US President Donald Trump has directed federal officials to identify Canadian-origin goods that could be removed from the US federal civilian procurement system, escalating an ongoing trade dispute with Canada over government contracts and market access.
Under a presidential memorandum signed on September 16, the director of the Office of Management and Budget (OMB) and the US Trade Representative (USTR) have been instructed to identify Canadian-origin products that could, where warranted and permitted by law, be removed or made unavailable for purchase through the federal civilian procurement system.
The memorandum focuses on what the Trump administration describes as a lack of reciprocity in government procurement between the two countries. The White House says Canada has introduced preferences for Canadian products and Canadian content under its “Buy Canadian” policy, while Canadian provinces have also restricted access for US companies seeking government contracts.
According to the memorandum, Canadian companies continue to have preferential access to US federal procurement covered by Washington’s commitments under the World Trade Organisation’s Agreement on Government Procurement. The White House puts the value of that federal procurement coverage at more than $280 billion annually. The figure refers to the procurement market covered by US commitments and does not mean Canadian companies receive contracts worth that amount.
Trump said in the memorandum that his administration would take action against what it described as unreasonable or discriminatory procurement practices. The directive therefore links access to US government purchasing with the treatment of American goods and companies in Canada.
The memorandum assigns the OMB director and USTR to work with members of the Federal Acquisition Regulatory Council and other senior officials as necessary. Officials are required to identify Canadian-origin items that could be affected and determine what measures can legally be taken. The OMB director must also keep the president informed about progress in implementing the directive.
The USTR has separately been directed to monitor how Canadian federal and provincial procurement systems treat US-origin products. The trade representative must report circumstances that could justify additional action. The memorandum also provides for Canadian products to regain access to US federal civilian procurement if Canada changes policies affecting US-origin goods.
The latest procurement action is part of a wider series of trade measures involving Canada. The White House fact sheet said the United States has not agreed to renew the United States-Mexico-Canada Agreement, or USMCA, in its current form, arguing that the existing agreement does not provide sufficient benefits for US manufacturers, farmers, ranchers, workers and service suppliers.
The procurement memorandum also follows trade actions announced on September 8. The White House said Trump imposed additional restrictions and tariffs on certain Canadian products under Section 338 of the Tariff Act of 1930, citing concerns over Canadian treatment of US exports, including alcoholic beverages, dairy products and motor vehicles.
Separate September 8 proclamations established additional measures involving selected Canadian dairy products, alcoholic beverages and motor vehicles. Some of those measures include additional duties and, for specified products, exclusions from US imports under the stated conditions.
The procurement dispute places another area of US-Canada economic relations under pressure. Rather than immediately specifying a complete list of Canadian products to be excluded from federal purchasing, the September 16 memorandum directs officials to identify products and take steps where they determine restrictions are warranted and legally permitted.
The White House has presented the measure as part of the Trump administration’s broader trade policy and its effort to address what it considers unequal treatment of US companies in foreign markets. The memorandum leaves implementation to federal agencies within their existing legal authority, while giving the USTR an ongoing role in monitoring Canada’s procurement policies.
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The measure adds government procurement to the broader series of trade disputes between Washington and Ottawa, alongside tariffs and restrictions affecting selected Canadian imports.
