TORONTO — U.S. President Donald Trump on Tuesday directed the General Services Administration to remove Canadian-origin products from federal buying lists unless Canada grants what he called full and fair reciprocity for American farmers and companies.The direction came the same day Canada’s retaliatory tariffs of 15%, 25% and 50% took effect on $27.6 billion in U.S. goods. Those duties match last month’s U.S. Section 338 tariffs. Prime Minister Mark Carney has said formal talks are not taking place. Neither his office nor the GSA had issued a detailed response by Tuesday evening.Trump wrote on Truth Social that Canada does not let U.S. dairy farmers sell into its market and that Canadian auto production exists because of “previous disastrous Trade Agreements.” He said the Canadian government, including the provinces, has blocked American firms from government procurement while Canadian companies keep broad access to U.S. federal and state contracts.“That is not reciprocity, it is a Canadian Trade Scam,” he wrote. “From now on, NO RECIPROCITY – NO ACCESS!”He said he is directing the GSA, working with the U.S. Trade Representative, to take all necessary steps to remove Canadian-origin products from GSA Multiple Award Schedules unless Canada restores reciprocity. Trump said those schedules account for more than $50 billion a year. He said a similar cutoff in his first term was reversed under President Joe Biden..GSA Multiple Award Schedules are the catalogues U.S. federal departments use to buy supplies and services. Removing Canadian-origin listings would affect exporters that sell through those catalogues, including Ontario manufacturers already facing 50% U.S. tariffs on selected goods and a threatened 50% tariff on Canadian cars, trucks, parts and steel on Jan. 1, 2027.Provincial governments apply domestic-preference and trade-agreement rules to public contracts. Trump described that as a ban.Canada’s counter-tariffs, in force as of 12:01 a.m. Tuesday, cover U.S. steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. Finance Minister François-Philippe Champagne said the list is meant to protect Canadian industry in the domestic market. Ottawa has announced a $7.5 billion support package for workers and businesses hit by U.S. duties.U.S. Trade Representative Jamieson Greer had already warned that further Canadian retaliation could bring U.S. import bans and pointed to provincial procurement limits. Trump also posted over the long weekend that Bombardier should not sell aircraft in the United States.
