Trump threatens to bar Canadian products from U.S. government purchases

Donald Trump has threatened to remove Canadian products from parts of the U.S. government’s purchasing system unless Ottawa restores what he called “full and fair reciprocity” for American farmers and businesses.

Trump announced the move on Truth Social and said the affected programs account for more than $50 billion a year. The programs, known as Multiple Award Schedules, allow the U.S. federal government and other public entities to buy commercial goods and services through contracts already established by the General Services Administration.

He directed the General Services Administration to work with the Office of the U.S. Trade Representative to remove Canadian-origin products. Their return, he said, would depend on Canada restoring the requested terms for U.S. companies and farmers.

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full and fair reciprocity

The announcement came as Canada’s retaliatory tariffs on roughly 27.6 billion Canadian dollars, or $20 billion, of U.S. products took effect. The duties range from 15% to 50% and cover steel, furniture, electronics and various consumer goods. Ottawa imposed them in response to 50% tariffs Washington introduced last month on certain Canadian products.

The trade dispute worsened after negotiations failed in August. Canadian Prime Minister Mark Carney accused Washington of seeking an economically dependent relationship and said the United States had demanded the ability to influence Canada’s future trade agreements with other countries. Carney defended Canada’s decision to leave the talks, saying the U.S. conditions did not allow for a fair deal, while maintaining that a “mutually beneficial” agreement remained possible. He has proposed reducing Canada’s historic reliance on the U.S. market by diversifying trade and strengthening domestic production. The latest measures have also added uncertainty over the future of the United States-Mexico-Canada trade agreement.

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mutually beneficial