President Donald Trump ordered his administration Tuesday to begin blocking Canadian products from a federal contracting program worth more than $50 billion annually, opening another front in the rapidly escalating feud between the United States and Canada.
Trump said in a Truth Social post that he directed the General Services Administration, working with the U.S. trade representative, to “take all necessary steps” to remove Canadian products from the agency’s multiple awards schedules, which allow federal agencies to purchase millions of commercial products and services from preapproved vendors, unless Canada provides what he called “full and fair reciprocity” for American companies.
“Canada has been ripping us off for years, but what many do not realize is that the Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets,” Trump posted. “This is the case even though Canada gets broad access into the massive American Government Procurement Market, including those of our States. That is not reciprocity, it is a Canadian Trade Scam.
“From now on, NO RECIPROCITY – NO ACCESS! I am hereby directing the GSA, working with the USTR, to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies. Those schedules account for more than 50 BILLION DOLLARS a year. This should have been cut off years ago, by other Administrations, like it was by mine, only to reinstituted by Sleepy Joe Biden.”
The order marks the latest escalation in an increasingly bitter economic dispute between longtime allies. On Monday, Trump said that Canada-based aircraft manufacturer Bombardier will no longer be allowed to sell in the U.S.
Bombardier is one of the world’s biggest producers of business jets, and Trump said that the company would have to build in the U.S. if it wants access to U.S. markets.
Also this week, Canada’s retaliatory tariffs on billions of dollars’ worth of U.S. products took effect overnight, targeting goods including steel, dairy products, appliances, agricultural equipment, and electronics. The tariff cost will vary by product, ranging from 15% to 50%, according to reports.
CANADIAN TARIFFS ON BILLIONS OF DOLLARS OF US GOODS AND PRODUCTS GO INTO EFFECT
Canada’s tariffs were in response to the decision by Trump on Aug. 22 to impose a 50% tariff on Canadian goods after negotiations between the countries broke down a day earlier, after each claimed the other had unreasonable requests that would be detrimental to their respective country’s workers.
Canadian Prime Minister Mark Carney has disputed allegations that his country is “ripping off” the U.S., as alleged by Trump, and said Canada would pursue trade relations elsewhere.