By: Ebenezer Adugyamfi/ Emmanuel Ayiku for GhanaianNewsCanada
September 17, 2026
U.S. President Donald Trump has signed a presidential memorandum directing federal agencies to begin removing Canadian-origin goods from the United States’ federal civilian procurement system, significantly escalating the ongoing trade conflict between the two neighbouring countries.
The White House says the order is intended to restore “reciprocity” in government procurement, arguing that Canadian federal and provincial Buy Canadian policies unfairly restrict access for American businesses while Canadian companies continue to benefit from access to U.S. government contracts.
What the order does
The memorandum instructs the Office of Management and Budget (OMB), the U.S. Trade Representative (USTR) and federal procurement officials to identify Canadian-origin products that can legally be removed or made unavailable for purchase across the federal civilian procurement system.
It also directs federal agencies to prioritize domestic American alternatives wherever possible and requires regular updates to President Trump on the implementation of the policy.
According to the White House, the U.S. federal procurement market covered under international agreements is worth more than US$280 billion annually.
Why the White House says it acted
In a fact sheet accompanying the memorandum, the Trump administration accused Canada of introducing procurement preferences that disadvantage U.S. companies, particularly through provincial and federal policies encouraging the purchase of Canadian-made goods.
The administration argues that while Canadian firms have historically enjoyed access to American government contracts, U.S. suppliers no longer receive equivalent treatment in Canada’s procurement market.
The White House described the measure as part of its broader America First trade strategy aimed at protecting American manufacturers, workers and small businesses.
Latest escalation in the trade war
The procurement order follows a series of increasingly severe trade measures imposed by Washington in recent weeks, including tariffs and restrictions targeting selected Canadian products.
The latest action comes as Canada continues pursuing closer economic and strategic partnerships with the European Union, a move that has drawn criticism from President Trump, who has warned that deeper Canada–EU integration could have trade consequences.
Despite the growing tensions, the White House has said the procurement memorandum is a response to Canadian procurement policies rather than Canada’s discussions with the European Union.
Potential impact on Canadian businesses
The new directive could affect Canadian companies that supply goods to U.S. federal departments and agencies, particularly firms involved in manufacturing, construction materials, industrial equipment and other government procurement markets.
However, the memorandum does not immediately ban all Canadian products. Instead, it launches a process requiring U.S. officials to determine which Canadian-origin items can legally be excluded under existing procurement laws and international obligations.
Canada’s response
Prime Minister Mark Carney has previously said Canada will continue diversifying its international partnerships while defending the country’s economic interests.
Ottawa has increasingly promoted domestic procurement and expanded trade relationships beyond the United States as part of its broader strategy to strengthen economic resilience amid the escalating dispute.
The latest U.S. action is expected to intensify negotiations between the two countries, with businesses on both sides of the border closely watching how the procurement rules are ultimately implemented.
