US President Donald Trump has ordered the General Services Administration (GSA) to begin removing Canadian-origin products from its government procurement schedules, escalating an already strained trade relationship between Washington and Ottawa.
Trump said Canadian products should lose access to US government procurement markets unless Canada provides what he described as equal access for American farmers and companies.
Trump said on Tuesday that he was directing the GSA to work with the US Trade Representative (USTR) to take all necessary steps to remove Canadian-origin products from the agency’s Multiple Award Schedules.
The measure would remain in place unless Canada restores what Trump called “full and fair reciprocity” for American farmers and businesses.
“The Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets,” Trump said in a post on Truth Social.
He argued that such restrictions did not represent equal treatment between the two countries.
“From now on, NO RECIPROCITY – NO ACCESS!” Trump declared.
Trump accuses Canada of unfair trade
Trump also renewed his criticism of Canada’s trade policies, particularly regarding American agricultural products.
“Canada doesn’t let our Great Dairy Farmers sell into the Canadian Market,” Trump said, adding that Canada’s automotive industry exists in part because of what he called previous “disastrous Trade Agreements” under earlier US presidents.
“Canada has been ripping us off for years,” Trump said.
He further accused the Canadian government and provincial governments of preventing American small businesses and companies from accessing their government procurement markets.
“That is not reciprocity, it is a Canadian Trade Scam,” Trump said.
Canadian products face removal from GSA schedules
Under Trump’s directive, the GSA will work with the USTR on measures targeting Canadian-origin products listed on its Multiple Award Schedules.
The GSA schedules are a major channel through which the US government purchases goods and services, with more than $50 billion in purchases made annually through the system.
The Canadian government did not immediately respond to a request for comment on Trump’s announcement.
US-Canada trade tensions intensify
Trump’s latest move comes amid a broader escalation in trade tensions between the United States and Canada.
The United States imposed 50% tariffs on around $20 billion worth of Canadian goods, effective August 22.
Canada responded with matching tariffs on an equivalent value of US imports. Those retaliatory measures took effect on Tuesday, further intensifying the trade dispute between the two North American neighbours.
The latest procurement restrictions add another front to the dispute, extending the conflict beyond tariffs and into government purchasing markets.
‘No equality, no access’
Trump’s announcement reflects his broader demand for reciprocal access to Canadian and US markets.
By linking Canadian access to US government procurement directly to market access for American farmers, small businesses and companies, the president is seeking to use federal purchasing power as additional leverage in the ongoing trade dispute.
The move could further pressure Canada to address US complaints over access to its government procurement market, while adding uncertainty for Canadian-origin products that currently rely on US federal contracts.
