U.S. President Donald Trump signed a presidential memorandum on Wednesday to identify Canadian-origin goods in federal civil government procurement and take steps to remove them, the White House said.
The move came a week after Trump banned the import of Canadian alcohol, motorcycles and various other products into the U.S. in an escalation of the trade war.
In the memo, Trump directs the U.S. Trade Representative and the Office of Management and Budget to “take steps” to identify items of Canadian origin that could be “removed or made non-available for purchase” from the federal government’s procurement system.
The memo does not appear to order an immediate ban on government agencies purchasing Canadian products but could open the door to restrictions in the future.
The White House did not immediately respond to a CBC News query about what value of goods could be affected by the move.
The U.S. government has procured on average about $1.6 billion US worth of Canadian products annually since 2021, says Canada-U.S. trade expert Eric Miller, based on his analysis of published spending data.
Miller, president of Rideau Potomac Strategy Group, says Trump’s memo appears to be a reaction to some Canadian provinces putting some limits on U.S. companies bidding on 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.
WATCH | A lopsided trade war:
How can Canada win a trade war with the U.S. when leverage isn’t equal? Andrew Chang explains how Canada is retaliating against massive tariffs levied by a neighbour 13 times its economic size.
(Photo credits: The Canadian Press, Reuters, Adobe Stock and Getty Images)
The memorandum also directs the U.S. trade representative to monitor Canada’s treatment of U.S. origin goods in Canadian government procurement.
The latest round of U.S. tariffs on Canadian goods took effect just after midnight Tuesday, adding 50 per cent levies to more than 100 products, including specific cheeses, motorboats, all-terrain vehicles (ATVs) and furniture.
WATCH | Canada hit with new tariffs and bans:
U.S. President Donald Trump hit back at Canada’s counter-tariffs with stiff new tariffs on billions of dollars in some products, and outright bans on others, including alcohol.
The ongoing trade war ramped up in recent weeks after the U.S. and Canada failed to reach a trade agreement in August.
On Aug. 22, the U.S. followed through on a threat of 50 per cent tariffs on a wide swath of Canadian goods. Canada retaliated with its own tariffs on nearly 700 categories of U.S. goods, which came into effect on Sept. 8.
