The federal government spends more than $1.3 billion annually on contracts with American suppliers, even as officials question the long-term impact of relying on U.S. firms for defence and non-defence procurement.According to a Department of Public Works briefing note titled Impact Of Tariffs On Procurement, Canadian federal departments awarded an average of $1.3 billion per year to U.S.-based suppliers over the past three years. Blacklock's Reporter says the figure excludes contracts with Canadian subsidiaries of U.S. companies and purchases through the U.S. Foreign Military Sales program.“These amounts do not take into account the origin of the goods and services, i.e. where they are made,” the note says, adding that the department has not calculated the total benefits to American contractors..The note is dated March 13, shortly after former prime minister Justin Trudeau accused U.S. President Donald Trump of trying to undermine Canada. “His goal is to destroy the Canadian economy so he can try to annex the country,” Trudeau told reporters. “That seems to be what he wants.”Trudeau also signaled a review of procurement policies that favour American suppliers, suggesting the federal government would re-evaluate how it awards contracts. “I won’t sugar coat it,” he said. “This is going to be tough.”.Prime Minister Mark Carney echoed those concerns in his March 23 campaign launch, saying Trump “wants to break us so America can own us.” He pledged to shift more procurement to Canadian companies, especially in the defence sector.“Eighty percent of our capital spending in defence is in the United States, not Canada,” Carney said in February while campaigning for Liberal leadership. “It is also about spending that money wisely and effectively and above all as much as possible — potentially the majority of the increase in that money — spent here in Canada as opposed to the United States.”
