Trump orders review of Canadian goods in federal procurement
President Donald Trump issued a new presidential memorandum on Wednesday expanding the United States’ effort to keep Canadian-origin items out of federal civil procurement, adding to the ongoing trade dispute between the two neighbours.
Memo directs agencies to review Canadian products
The memo orders Russell Vought, head of the White House Office of Management and Budget, and U.S. Trade Representative Jamieson Greer to identify any Canadian-origin items that can be removed or made unavailable under existing law. It also requires them to alert departments about domestic alternatives, echoing the long-standing Buy American Act of 1933.
By limiting the scope to civil contracts, the directive leaves defence-related spending untouched. Federal data show that in fiscal year 2025 the United States awarded roughly US$2.1 billion to Canadian suppliers, with more than US$1.7 billion coming from the Department of Defense—now referred to by the president as the Department of War.
Financial impact and previous procurement levels
Within the defence share, about US$1.3 billion was spent on bulk explosives, combat vehicles and military-grade ammunition sourced from Canada. The civilian portion of the Canadian market is therefore a fraction of the total spend.
A 2023 analysis by Export Development Canada estimated that all U.S. government levels paid Canadian firms roughly US$15 billion in 2023. Of that, the federal government accounted for US$624 million, while state and local authorities handled the majority of the remaining contracts.
Compared with earlier threats that focused on a General Services Administration list of 50 companies, this broader civil-procurement sweep could affect a larger set of vendors, even though the original claim of targeting US$50 billion in Canadian goods was based on a much smaller roster.
Canadian response and industry concerns
The move has drawn criticism from the Canadian business community. Alex Greco, senior director for manufacturing and value chains at the Canadian Chamber of Commerce, said in a statement that further restrictions to businesses, especially integrated ones between the U.S. and Canada, simply means more lost sales and greater uncertainty for Canadian suppliers and more costly or less reliable options for the U.S.
Canada’s trade ministry echoed the concern, saying it will review the measures with “the best interest of Canadian businesses and workers” in mind, according to a statement signed by Gabriel Brunet.
Both Vought and Greer have yet to publish specific recommendations, leaving firms on both sides awaiting clarification on which contracts may be altered or cancelled.
