Trump Signs Memo Excluding Canadian Goods from U.S. Federal Procurement
nashnova research
Trump signed a memo on September 16 ordering the removal of Canadian-origin goods from the federal civilian procurement system — a framework worth over $50 billion a year. This means the U.S.–Canada trade war has escalated beyond tariffs into government purchasing, accelerating economic decoupling.
What does this memo actually do?
It authorizes the budget director, trade representative, and procurement regulators to identify and remove all Canadian-origin goods from the federal procurement system.
This extends a September 8 order that already told the General Services Administration to strip Canadian products from Multiple Award Schedules — the government-wide purchasing framework.
This means → Canadian firms face systemic exclusion from U.S. government contracts — not just higher tariffs, but a flat ban on purchase.
How far has the trade war escalated?
Canada imposed new retaliatory tariffs on September 8 covering roughly $20 billion in U.S. goods, at rates of 15%, 25%, and 50%, spanning steel, aluminum, dairy, appliances, and farm equipment.
The U.S. had already levied 50% tariffs on equivalent Canadian goods under Section 338 of the Tariff Act of 1930, effective August 22.
Trump also announced a 50% tariff on Canadian autos and parts starting in 2027, threatened to ban sales of Bombardier products in the U.S., and declared an import ban on select Canadian goods — including most alcoholic beverages, some dairy, and motorcycles — effective September 29.
In plain terms = both sides have moved to "you ban my procurement, I ban your products" — well beyond ordinary trade friction.
How is Canada retaliating?
Beyond tariffs, Canada has rolled out a "Buy Canadian" policy prioritizing domestic suppliers.
Every province except Alberta has restricted or banned sales of U.S. alcoholic beverages, or imposed surcharges on them.
This reflects a retaliation effort that reaches past the federal level — provincial governments are fully engaged, and decoupling is spreading into consumer markets.
Is there still room for a deal?
Trump said on September 12 in Ireland that a deal could come "quite quickly," while repeating that "the U.S. has been taken advantage of by Canada for 50 years."
Canadian PM Mark Carney responded on September 14: "We are ready to sit down and negotiate." He also stressed that diversifying away from the U.S. remains a top priority.
In plain terms = both sides are signaling willingness to talk, but neither has pulled back a single sanction — whether negotiations can produce results before the September 29 import ban takes effect is the market's key variable.
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