Canada’s “Buy Canadian” policy, announced by Prime Minister Mark Carney earlier this month, is set to be fully implemented by 2026, according to a senior federal source. The plan is expected to feature in the fall budget and prioritize Canadian suppliers in federal procurement and infrastructure spending.
Policy Timeline
The source, speaking to CBC News, said the first elements of the policy could take effect as early as November 2025, with full application the following spring. They added that new funding is likely to be attached to the November budget, though it is still unclear whether separate legislation will be required.
Federal Commitment
Audrey Champoux, press secretary for the prime minister, confirmed the timeline in broad terms:
“As the prime minister announced earlier this month, new measures will be introduced by November 2025 to make sure that Canadian suppliers and their products are prioritized in all federal spending.”
The policy will cover federal agencies, Crown corporations, infrastructure spending, grants, contributions and loans, making public procurement an anchor for Canadian industry.
Economic Stakes
The federal government purchases about $37 billion worth of goods and services each year. A BMO Economics report estimated that shifting procurement toward domestic suppliers could add $10 billion annually to Canada’s economy, though it warned of higher costs.
Industry groups such as the Canadian Steel Producers Association have long called for a formal “Buy Canadian steel” policy, arguing that domestic producers are capable of replacing most imported supply.
Risks and Challenges
Experts caution the policy could trigger trade disputes. Trade lawyer Mark Warner said Canada risks undermining its credibility in opposing protectionism abroad. “Once you go down this road, it’s very hard to stand up and complain about someone else,” he said.
The renewable energy sector has also raised concerns, noting reliance on foreign components such as turbine blades and solar panel parts. Industry groups are pushing for incentives rather than penalties to encourage local sourcing.
Broader Context
The policy is part of a broader package Carney announced earlier this month to support sectors hit by U.S. and Chinese tariffs. Other measures include a $5-billion fund for trade-dependent businesses, reskilling programs for workers, and liquidity support.
The Buy Canadian initiative will be closely watched as Ottawa prepares its November 4 budget, which will detail funding and scope.
