Trump Signs Memo Blocking Canadian Goods From Federal Contracts, Deepens Trade Standoff With Ottawa

President Donald Trump signed a presidential memorandum on Wednesday, Sept. 16, directing federal officials to identify and remove Canadian-origin goods from the U.S. federal civil procurement system, according to a White House fact sheet reported by Anadolu Agency.

The memo puts the Office of Management and Budget, the U.S. Trade Representative and the Federal Acquisition Regulatory Council in charge of figuring out which Canadian products can be pulled from the list of things the federal government is allowed to buy. It also orders USTR Jamieson Greer to keep tabs on how Canada treats American goods in its own government purchasing, according to the Epoch Times, republished by ZeroHedge and NTD.

This follows a Sept. 8 directive ordering the General Services Administration to strip Canadian products from its Multiple Award Schedules, a contracting program that covers more than $50 billion in annual federal purchasing, according to the Epoch Times report.

The Trump administration's stated case: Canadian companies get preferential access to more than $280 billion of the U.S. government procurement system, while American firms don't get anything close to reciprocal treatment north of the border, according to the administration's own statement cited by the Times of India. The administration also pointed to Canada's "Buy Canadian" policy and provincial rules it says squeeze out small U.S. businesses.

The Tariff Math Behind It

The U.S. imposed 50% tariffs on Canadian goods under Section 338 of the Tariff Act of 1930, effective Aug. 22. Canada hit back on Sept. 8 with counter-tariffs on roughly $20 billion of American imports, hitting steel, aluminum, dairy, appliances, farm equipment, pulp and paper, plastics and electronics at rates of 15%, 25% and 50%, according to NTD.

CNN reported that less than 24 hours after Canada's retaliatory tariffs took effect, Trump escalated further, announcing outright bans on Canadian alcohol, motorcycles and whey set to take effect Sept. 29 at 12:01 a.m. ET. Until then, those products face 50% duties. The Washington Post confirmed Trump signed proclamations that week covering alcohol, dairy and motorcycles, modifying existing tariffs and adding new bans.

Trump also widened the tariff list to include golf carts, drawing paper and more steel and aluminum parts, per CNN. He's separately threatened to double auto tariffs to 50% starting in 2027 and to ban Bombardier, the Montreal-based aircraft maker, from selling in the U.S. unless it builds more here. Bombardier told CNN it already has "a significant manufacturing presence" in the U.S. and is "a strong contributor" creating "tens of thousands of jobs across the United States" in response to the threat.

Where Talks Stand

Trade negotiations between the two countries collapsed last month at the last minute, according to CNN, after Trump pushed back his own deadline touting a deal that never materialized. Since then, the rhetoric has gotten personal. Trump renamed Lake Ontario "Lake America" on social media, a move CNN noted drew opposition from Canadians and even some Republicans. This fight isn't splitting neatly along party lines.

Canadian Prime Minister Mark Carney has vowed "dollar-for-dollar" retaliation and accused the U.S. of not negotiating in good faith. "When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions, we can have those discussions," Carney said, according to CNN.

Canada's response to trade pressure hasn't been limited to tariffs. All provinces except Alberta have restricted or banned U.S. alcohol sales, or taxed them, and enacted rules favoring Canadian suppliers in government contracts, according to NTD. Industry Minister Melanie Joly has said Canada needs to "stand on our two feet," and European Commission President Ursula von der Leyen has invited Canada to become the EU's first associate member. Conservative opposition leader Pierre Poilievre rejected the offer, insisting Canada stay "independent" and avoid "EU taxes" and "EU laws," according to Ground News.

Canada's strongest argument is straightforward: its Buy Canadian policy and provincial procurement preferences are a direct response to U.S. tariffs already in place, not some unprovoked shakedown of American firms. Ottawa can also point out that U.S. dairy and auto access complaints predate this fight by years and were negotiated under prior trade agreements Trump himself has called disastrous. Whether Canada's procurement restrictions are actually broader or more restrictive than what the U.S. is now doing to Canadian suppliers is a question neither government has settled with hard numbers.

The federal ban on Canadian alcohol, motorcycles and whey takes effect Sept. 29. Whether Ottawa answers the new procurement memo with fresh countermeasures, or whether either side returns to the negotiating table before then, remains unresolved.