Trump targets Canadian goods in U.S. government contracts as Canada’s new tariffs take effect, deepening the trade fight between the two countries.
The Canada-U.S. trade fight has taken another sharp turn.
U.S. President Donald Trump has ordered his administration to remove Canadian-made products from U.S. government purchasing schedules. The move came just hours after Canada put new retaliatory tariffs on U.S. goods.
The latest step adds fresh pressure to an already tense relationship. It also raises new questions for Canadian companies that sell goods into the U.S. public sector.
Trump orders action against Canadian products
Trump said the U.S. General Services Administration should work with the U.S. Trade Representative to remove Canadian products from its Multiple Award Schedules.
These schedules help U.S. government agencies buy products and services.
Trump says the move is about fairness. He argues that Canadian governments have made it harder for American companies to compete for public contracts.
However, Canada has its own “Buy Canadian” policy. Ottawa introduced the policy after the Trump administration began imposing tariffs and making other trade demands.
The United States also uses “Buy America” rules. These rules favour U.S.-made products in several areas.
Canada’s tariffs fuel the latest clash
The timing is important.
Canada’s new tariffs on U.S. products took effect on Tuesday, Sept. 8. They cover about $20 billion worth of American goods. The measures include tariffs on products such as steel, aluminium and farm equipment.
Ottawa introduced the measures after trade talks with Washington failed to produce a deal.
Prime Minister Mark Carney has defended the response. He says Canada needs to reduce its economic dependence on the United States while protecting Canadian workers and businesses.
As a result, both countries are now using trade measures to push the other side.
Trade tensions move beyond tariffs
This latest dispute goes further than another round of duties.
Trump’s decision targets access to U.S. government contracts. That could create another challenge for Canadian businesses that rely on American public-sector buyers.
At the same time, the wider trade fight is affecting major industries on both sides of the border.
The dispute has already hit sectors such as automotive, metals, manufacturing and agriculture. Moreover, businesses face more uncertainty as governments add new measures.
For companies, that uncertainty can make investment and planning harder.
Bombardier also faces pressure
The pressure on Canadian companies does not stop with government contracts.
Trump has also threatened Canadian aircraft maker Bombardier. He has suggested blocking its jets from the U.S. market unless the company expands production in the United States.
That threat came as Canada launched its latest counter-tariffs.
Bombardier has highlighted its economic footprint in the United States, including manufacturing operations and jobs. Still, the threat has added another layer of risk for the company.
What happens next?
For now, there is no clear sign that the trade fight is easing.
Instead, both Ottawa and Washington are taking tougher positions.
Canada is looking to strengthen trade ties with other partners. Meanwhile, the Trump administration continues to use tariffs and possible import restrictions as tools in its negotiations.
Therefore, Canadian exporters are watching closely.
The next moves could affect more than tariffs. They could also shape government contracts, investment decisions and supply chains across North America.
For Canada and the United States, the message is clear: the trade dispute is entering a more serious phase.
