US President Donald Trump ordered the General Services
Administration (GSA) to work with the Office of the United States Trade
Representative (USTR) to remove Canadian products from federal procurement
programs.
Trump conditioned the measure on Canada granting what he
called “full and fair reciprocity” to US farmers and businesses.
The decision affects the GSA's Multiple Award Schedules,
used by federal government agencies to acquire a wide variety of goods and
services.
Trump justified the measure by accusing the Canadian
government and its provinces of preventing small US businesses from
participating in their public procurement markets.
The decision represents a further escalation in trade
tensions between Washington and Ottawa, at a time when both countries are
engaged in a growing tariff dispute. The Canadian government did not issue an
immediate response to the announcement and instead focused on seeking an
alliance with the EU.