US President Donald Trump has directed his administration to identify Canadian-made goods purchased by the federal government and take steps to remove them from the procurement system.
The White House announced the move on Wednesday, in the latest escalation of the trade dispute between the United States and Canada.
Trump directed the US Trade Representative and the Office of Management and Budget to identify Canadian-origin products that could be “removed or made non-available for purchase” by federal government agencies.
The memorandum does not immediately ban US government agencies from buying Canadian products but could pave the way for restrictions in the future.
The White House did not immediately disclose the value of Canadian goods that could be affected.
Canada-US trade expert Eric Miller estimated that the US government has purchased an average of about $1.6bn worth of Canadian products annually since 2021.
Miller, president of Rideau Potomac Strategy Group, said the move appeared to be a response to restrictions introduced by some Canadian provinces on US companies bidding for government contracts.
“The U.S. would argue that this is levelling the playing field with the restrictions that Canadian provinces have put on,” Miller told CBC News.
US to monitor Canadian procurement
Trump also directed the US Trade Representative to monitor how Canadian governments treat US-origin goods in their procurement processes.
The latest action came a week after Trump banned imports of Canadian alcohol, motorcycles and other products into the US.
It also followed the introduction of another round of US tariffs on Canadian goods.
The latest tariffs, which took effect shortly after midnight Tuesday, imposed 50 per cent levies on more than 100 products, including certain cheeses, motorboats, all-terrain vehicles and furniture.
Tensions between the two countries intensified after Washington and Ottawa failed to reach a trade agreement in August.
Diaspora Digital Media reports that on August 22, the US imposed 50 per cent tariffs on a wide range of Canadian goods.
Canada responded by imposing tariffs on nearly 700 categories of US products from September 8.
The latest memorandum adds government procurement to the areas affected by the ongoing trade dispute.
CBS.
