According to the Financial Post, U.S. President Trump has instructed federal agencies to stop using Canadian goods in government procurement contracts and to carry out his previous threats. The US-Canada trade dispute escalated further. In a presidential memorandum, the White House criticized Canada’s implementation of the “Buy Canadian goods” policy, which poses obstacles to U.S. companies entering the Canadian government procurement market.
This is Trump’s latest escalation in the trade war between the two countries. On Wednesday, European Commission President Ursula von der Leyen proposed making Canada an “associate member” in a speech. Trump criticized the proposal as potentially “hostile,” threatening to impose more tariffs on European goods and even halt multiple trade deals with Europe. Earlier this month, Trump stated on social media that unless Canada resumes comprehensive, fair reciprocity for American farmers and businesses, Canadian goods will be excluded from government procurement. At the time, he stated that Canadian goods and services sold through the so-called “Multiple Award Schedule” were valued at over $50 billion annually. However, a senior government official later clarified that the White House calculated the total size of the U.S. government procurement market, and Canadian companies do not always hold the full share.