Trump Warns Canadian Firms Could Be Excluded From US Procurement as Trade Tensions Escalate

President Donald Trump said Canadian companies could be barred from US government procurement unless Canada guarantees equal market access for American businesses and farmers.

Bloomberg reported on September 8 that Trump made the threat in a Truth Social post, saying he would proceed unless Canada restores what he called “full and fair reciprocity” for US farmers and companies.

The measure Trump cited involves the Multiple Award Schedule, under which the US federal government buys commercial products and services. He said Canadian goods and services sold through the program exceed $50 billion a year.

Bloomberg Government data indicates the total may be lower. Since fiscal year 2021, US federal agencies have procured about $13 billion in goods and services from Canada, excluding classified contracts.

If implemented, the move could sharply limit Canadian companies’ access to the US federal procurement market. It remains unclear whether defense contracts would be covered.

Canada is also stepping up its response. Prime Minister Mark Carney, after trade talks with the US collapsed, said Ottawa would retaliate on a “dollar-for-dollar” basis. Starting September 8, Canada imposed additional tariffs on hundreds of US consumer goods, including motorcycles, cosmetics and cheese. It also raised tariffs on some US steel products to 50% from 25%.

If the trade conflict persists, supply chains spanning both countries will come under greater strain. Industries with heavy cross-border flows of parts and raw materials, especially autos, stand to be affected.

Concerns are also growing around Canadian aircraft maker Bombardier. Republican Senator Jerry Moran said he had told the Trump administration that Bombardier contributes to jobs in Kansas. Bombardier, for its part, has emphasized that it employs workers in more than 20 US states.

The tariff clash is also reshaping corporate production strategies. Sapporo Breweries is moving part of its production from Canada to the US to avoid a 50% tariff on beer exports from Canada.