US President Donald Trump signed a Presidential Memorandum to take steps to remove Canadian-origin goods from the US federal civil procurement system, escalating trade tensions with Canada.Trump directed the Office of Management and Budget and the US Trade Representative, in coordination with the Federal Acquisition Regulatory Council, to identify Canadian-origin products and take steps to remove them from the list of goods available for purchase by the federal government.The US Trade Representative has also been directed to monitor Canada’s treatment of US-origin goods in its government procurement system.The Trump administration said the move was in response to what it described as Canada’s “unreasonable and discriminatory treatment” of US goods and restrictions on US companies seeking access to Canadian federal and provincial procurement markets.“Canada has received preferential access to the US market for years, while doubling down on and continuing its unfair treatment of US commerce,” the administration said.According to the administration, Canadian companies have preferential access to more than $280 billion of the US government procurement system, while US companies do not receive equivalent treatment in Canada. The administration also pointed to Canada’s “Buy Canadian” policy, saying some Canadian provinces have introduced preferences for Canadian products and content that disadvantage US businesses, particularly small companies.The memorandum also requires the US Trade Representative to continue monitoring Canada’s procurement policies and treatment of American goods. It also directs federal agencies to take steps necessary to implement the changes.The latest move comes amid worsening trade tensions between the two neighbours. On September 8, the Trump administration announced additional measures targeting certain Canadian products, including restrictions related to alcoholic beverages, dairy and motor vehicles.The White House has separately moved to exclude certain Canadian products from US imports, citing what it called continued discrimination against US commerce.The Trump administration said its broader trade policy is intended to expand market access for US exports, support domestic manufacturing and protect American workers and businesses.
