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Trump bans Canadian goods from U.S. government contracts after new duties kick in

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When will Canadians see price increases from retaliatory tariffs? Financial expert weighs in

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U.S. President Donald Trump says he is directing the federal agency that oversees government procurement to remove all Canadian-origin products from its “awards schedules” after Ottawa’s retaliatory tariffs came into effect.

In a post on social media, Trump says “the Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets.”

He claims “that is not reciprocity, it is a Canadian Trade Scam.”

Today’s post was the president’s first aimed at Canada since Ottawa’s retaliatory tariffs took effect just after midnight EDT Tuesday.

Trump seemed to be referring to Ottawa’s “Buy Canadian Policy,” which was launched after the president targeted Canada with tariffs and threats of annexation.

The United States also has a “Buy America” policy that prioritizes domestic purchasing in key sectors.

This is a breaking update. More to come...

Below is The Canadian Press’ earlier story...

OTTAWA — Ottawa’s retaliatory tariffs on American goods — a response to the 50 per cent tariffs Washington hit Canada with last month — took effect just after midnight EDT on Tuesday.

On Aug. 22, U.S. President Donald Trump imposed tariffs on nearly $28 billion worth of Canadian goods, from hockey sticks and cement to honey, after trade talks broke down.

Canada’s reciprocal tariffs target the same value in U.S. goods, all drawn from the list of products being tariffed by the United States. They include dairy products, plywood and sunscreen.

This latest tariff war began when negotiations to resolve some outstanding trade irritants on both sides of the border fell apart, with each side accusing the other of making last-minute demands.

In a national video address released Tuesday, Prime Minister Mark Carney warned that Canada’s pivot away from the United States will come at a cost, but the alternative would be far worse.

“In the spring of last year, I warned that America is trying to break us so they can own us. And I promised that that will never, ever happen,” Carney said in his video address.

Carney insisted that trade talks fell apart because the U.S. attempted to limit Canada’s ability to trade with other counties, made demands affecting Canada’s ability to protect and promote the French language, and would not move enough on tariffs affecting the auto sector.

“We couldn’t accept what they offered. We wouldn’t give what they’d asked. As a result, the U.S. has imposed new tariffs designed to hurt and divide us,” Carney said last week.

“Now, that’s a miscalculation because Canadians will always take care of each other. And it’s a miscalculation because we have everything we need to build the country we want. We have the reserves, we have the resilience, and we have the right plan.”

In the hours before the new Canadian tariffs took effect, Trump took to social media with some new anti-Canada rants — including an AI-generated cartoon showing him as a hockey player whacking his stick at Carney and shouting, “Get up governor.”

Trump has repeatedly expressed his desire to make Canada a U.S. state and has referred to both Carney and his predecessor, former prime minister Justin Trudeau, as governor.

In January 2025, before being sworn in for his second term, Trump ruled out using military force to annex Canada but said he would consider using “economic force” to get Canada to become part of the U.S.

Vehicles approach the United States border as seen at Saint Bernard de Lacolle, Que., on Monday, July 21, 2025. THE CANADIAN PRESS/Christopher Katsarov Vehicles approach the United States border as seen at Saint Bernard de Lacolle, Que., on Monday, July 21, 2025. THE CANADIAN PRESS/Christopher Katsarov (Christopher Katsarov)

Trump on Monday also threatened to prevent Quebec’s Bombardier from selling in the United States unless it builds its aircraft there. In a lengthy statement, the company cited the thousands of people it employs at more than 20 locations across the United States.

Canada’s counter tariffs include a 50 per cent tariff on a variety of American dairy products such as milk and cream, and a 25 per cent tariff on fresh cheese and curd. Canada is also targeting U.S. wood products with 25 per cent tariffs on softwood, including pine, fir and spruce.

Multiple steel and aluminum products are also being hit with a 50 per cent tariff, up from the current 25 per cent rate. They include steel rods, bars and sheets, along with prefabricated items such as bridges, towers, scaffolding, and door and window frames.

Some beauty products and makeup are now subject to 50 per cent tariffs, including perfumes, sunscreen and suntan products, lip and eye makeup, manicure and pedicure preparations, and hair products.

Carney travelled to Thunder Bay, Ont., last week to announce another multi-billion manufacturing contract, this time to build passenger cars for Via Rail in Ontario.

In a Labour Day statement, Carney said Canada’s effort to build more at home and diversify its trading partners was working.

“Today, in the face of a global rupture, Canada is building big again — new ports, mines, and energy corridors, millions more affordable homes, new roads, railways, and airports. And we are building it all in solidarity with Canadian workers,” Carney said.

Robert Bothwell, a historian and professor at the University of Toronto, said Carney and Canada have become symbols of resistance to Trump.

“What he’ll want to do is make an example of Carney and Canada and theoretically terrify everybody else while in fact showing them that they need to remove themselves even further from the United States,” he said.

Conservative Leader Pierre Poilievre called Monday for more transparency from Carney, saying Canadians deserve to know the economic impact counter tariffs would have on businesses and individuals.

“All Canadians stand united in denouncing the president’s unacceptable tweets, trolling and tariffs, and we have to stand united for its workers and all of our people,” Poilievre told a news conference in Regina.

“The Canadian people deserve the facts and a plan. We need to have both of those things from the prime minister, and so far, we’ve had neither.”

Prime Minister Mark Carney speaks at the Alstom Plant in Thunder Bay, Ont. on Thursday, September 3, 2026. Carney announced a $4.7 billion contract to build 313 new passenger cars for Via Rail on Thursday. THE CANADIAN PRESS/David Jackson Prime Minister Mark Carney speaks at the Alstom Plant in Thunder Bay, Ont., on Thursday, Sept. 3, 2026. THE CANADIAN PRESS/David Jackson

The Canadian Federation of Independent Business has warned that small businesses could close due to the trade war despite Ottawa’s announced supports.

Meanwhile, as Carney gets set to address the European Parliament next week, experts like Daniel Béland say his remarks may have global appeal.

“The Canadian public is behind the Carney government and the world is watching what will happen next,” said Béland, a political scientist at McGill University.

He said if Canada’s defiant approach succeeds, it could offer “a template” to the world on resisting the Trump administration’s trade policies.

This report by The Canadian Press was first published Sept. 8, 2026.

— With files from The Associated Press