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Trump Bars Federal Agencies From Buying Canadian Goods
(MENAFN) President Donald Trump ordered the United States' federal purchasing agency on Tuesday to halt acquisitions of Canadian-made products, deepening an already escalating trade war with Ottawa.
The directive instructs the General Services Administration (GSA) to coordinate with the US Trade Representative's office to strip Canadian products from its list of approved vendors — the so-called Multiple Award Schedules. Trump put the value of those contracts at more than $50 billion annually.
"Everyone knows that Canada doesn't let our Great Dairy Farmers sell into the Canadian Market, and that the only reason Canada makes Autos is because of previous disastrous Trade Agreements while other Presidents were in Office," Trump wrote on Truth Social.
He accused both Canada's federal government and its provinces of having "banned American Small Businesses and Companies from selling into their Government Procurement Markets" — a claim that runs counter to the fact that Canadian firms enjoy broad access to comparable US government markets, including those managed at the state level.
"Canada has been ripping us off for years... That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY – NO ACCESS!" he wrote.
Trump argued the new restrictions "should have been cut off years ago, by other Administrations," laying blame for their earlier reinstatement on former President Joe Biden.
The move comes after trade negotiations between Washington and Ottawa broke down last month, prompting the US to slap 50% tariffs on major Canadian exports.
Canada answered in kind: retaliatory tariffs covering $20 billion in US goods took effect early Tuesday, marking a fresh escalation in the standoff between the two neighbors.
Ottawa clarified that its counter-tariffs apply strictly to goods of US origin and will exempt shipments already in transit on the day the measures took effect.
The dispute has intensified sharply since Trump returned to the White House, with wave after wave of new tariffs and retaliatory responses on both sides.
Trump has long pointed to the US-Canada trade imbalance as justification for his tariff policy, repeatedly accusing Ottawa of "ripping off" the United States.
The directive instructs the General Services Administration (GSA) to coordinate with the US Trade Representative's office to strip Canadian products from its list of approved vendors — the so-called Multiple Award Schedules. Trump put the value of those contracts at more than $50 billion annually.
"Everyone knows that Canada doesn't let our Great Dairy Farmers sell into the Canadian Market, and that the only reason Canada makes Autos is because of previous disastrous Trade Agreements while other Presidents were in Office," Trump wrote on Truth Social.
He accused both Canada's federal government and its provinces of having "banned American Small Businesses and Companies from selling into their Government Procurement Markets" — a claim that runs counter to the fact that Canadian firms enjoy broad access to comparable US government markets, including those managed at the state level.
"Canada has been ripping us off for years... That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY – NO ACCESS!" he wrote.
Trump argued the new restrictions "should have been cut off years ago, by other Administrations," laying blame for their earlier reinstatement on former President Joe Biden.
The move comes after trade negotiations between Washington and Ottawa broke down last month, prompting the US to slap 50% tariffs on major Canadian exports.
Canada answered in kind: retaliatory tariffs covering $20 billion in US goods took effect early Tuesday, marking a fresh escalation in the standoff between the two neighbors.
Ottawa clarified that its counter-tariffs apply strictly to goods of US origin and will exempt shipments already in transit on the day the measures took effect.
The dispute has intensified sharply since Trump returned to the White House, with wave after wave of new tariffs and retaliatory responses on both sides.
Trump has long pointed to the US-Canada trade imbalance as justification for his tariff policy, repeatedly accusing Ottawa of "ripping off" the United States.
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