Trump moves to restrict Canadian goods in US government contracts

• President Donald Trump has directed officials to identify Canadian goods that could be excluded from US federal civilian procurement.

• The White House says Canada’s domestic purchasing policies and provincial restrictions unfairly limit American suppliers.

• The measure comes amid wider trade tensions, with Washington refusing to renew the US-Mexico-Canada Agreement in its current form.

President Donald Trump has ordered US officials to identify Canadian products that could be removed from the federal civilian procurement system, escalating a trade dispute over access to government contracts.

The presidential memorandum directs officials to consider excluding Canadian-origin goods wherever such action is justified and permitted under US law.

The Trump administration linked the move to Canada’s “Buy Canadian” policy and restrictions imposed by its provinces. It alleged that these measures created new barriers for American businesses seeking Canadian government contracts.

At the same time, Canadian companies retain preferential access to sections of the US federal procurement market covered by the World Trade Organisation’s Agreement on Government Procurement, the administration said.

The covered US procurement market is valued at more than $280 billion annually. However, the figure represents the overall market included in Washington’s commitments and not the value of contracts awarded to Canadian companies.

“My Administration will always act to combat such unreasonable or discriminatory practices,” Trump said in the memorandum.

The order gives the director of the Office of Management and Budget and the US trade representative responsibility for identifying possible restrictions. They will work with the Federal Acquisition Regulatory Council and consult other senior officials where necessary.

The US trade representative has also been instructed to monitor the treatment of American goods in Canada’s federal and provincial procurement systems.

The official must inform Trump of any developments that could justify further measures or allow a previously restricted Canadian product to regain access to US government purchasing.

According to the memorandum, Canada withdrawing policies that deny US-origin goods the treatment cited by Washington could provide grounds for restoring access.

Federal agency heads have been directed to take appropriate steps within their existing authority to implement the order. They may delegate the responsibility where permitted by law.

The White House presented the directive as part of Trump’s broader trade agenda, claiming that American companies no longer receive equal treatment in Canadian public procurement despite Canada’s commitments to the US.

Neither the memorandum nor its accompanying fact sheet included a response from the Canadian government to the allegations.

The White House also said Washington had not agreed to renew the United States-Mexico-Canada Agreement in its present form, arguing that it did not deliver sufficient benefits for American manufacturers, farmers, ranchers, workers and service providers.

The procurement directive follows trade measures announced on September 8. The White House said Trump had imposed bans and raised tariffs on certain products under Section 338 of the Tariff Act of 1930, citing Canada’s treatment of US alcoholic beverages, dairy products and motor vehicles.

The administration maintains that Canadian suppliers continue to enjoy preferential access to covered US federal purchasing opportunities while American businesses face restrictions in Canada’s federal and provincial markets.

With IANS inputs