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

U.S. President Donald Trump signed new executive orders on Tuesday, ramping up retaliation after Canada imposed its latest set of duties on the United States.

The five orders, which will take effect later this month, will completely bar the import of certain Canadian goods, including motorcycles, some dairy products and alcoholic beverages.

It comes after Ottawa’s tariffs — a response to the 50 per cent duties Washington hit Canada with last month — took effect just after midnight EDT Tuesday.

After Ottawa’s duties were implemented, 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 a video posted on social media.

Since negotiations fell apart last month, Trump has taken aim at Canada almost daily but his latest orders are a significant escalation of trade tensions between the two countries.

Trump used Section 338 of the Tariff Act of 1930 to hit Canada with 50 per cent tariffs, accusing Canada of treating the U.S. unfairly. He pointed to provincial bans on U.S. liquor imports and quotas on certain U.S. vehicles — put in place in response to Trump’s initial tariffs — as well as Canada’s supply-managed dairy system.

Tuesday’s executive orders justified Trump’s latest move by saying Canada didn’t stop its discrimination against U.S. autos, dairy and vehicles so now they are able to block the import of certain products because it is “consistent with the interests of the United States and the public interests.”

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Trump also posted on social media earlier Tuesday that he is directing the federal agency that oversees government procurement to remove all Canadian-origin products from its “awards schedules.”

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

“That is not reciprocity, it is a Canadian Trade Scam,” Trump posted. “From now on, NO RECIPROCITY — NO ACCESS!”

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. Some provinces have implemented similar policies.

The United States also has a “Buy America” policy that prioritizes domestic purchasing in key sectors. Former Democrat president Joe Biden implemented an array of protectionist procurement rules that Trump has kept in place or expanded.

It was not immediately clear what would be affected by the procurement policy, despite the president claiming “those schedules account for more than 50 BILLION DOLLARS a year.”

The General Services Administration says its award schedules are long-term government-wide contracts that negotiate set prices for goods and services with specific suppliers. When a federal department or agency, along with state and local governments, need something, they can opt to choose from the pre-approved list at those set prices, and avoid a new procurement process.

Canada-U.S. Trade Minister Dominic LeBlanc said the federal government was assessing the latest U.S. tariff measures.

“I am in contact with (U.S. Trade Representative Jamieson Greer),” LeBlanc said on X. “When the U.S. is ready to engage, our government will work in good faith and constructively towards a more secure mutually beneficial trading relationship that fully respects Canadian sovereignty.”

Earlier Tuesday, Canadian premiers and opposition parties stood largely aligned with Ottawa’s decision to move forward with retaliatory tariffs, though some urged the parties to get back to the table.

Conservative Leader Pierre Poilievre repeated his call for more transparency from Carney, posting on social media that the prime minister should release the full cost of the duties.

Saskatchewan Premier Scott Moe called the tariffs a necessary response to “unjustified tariffs” from the United States but said both countries must not forget tariffs increase costs for businesses and consumers on both sides of the border.

Alberta Premier Danielle Smith said her province will continue to work with the federal government to take care of the people and businesses hurt by tariffs, while cautioning against any more escalation.

Since negotiations fell apart last month, Trump has continuously taken aim at Canada. He signed an order to rename Lake Ontario as “Lake America” and has issued social media posts about the Canadian dollar.

Trump spent the weekend posting some new anti-Canada rants on social media — including an AI-generated cartoon showing him as a hockey player whacking his stick at Carney and shouting, “Get up governor.”

Trump on Monday 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.

Trump’s Treasury Secretary Scott Bessent on Tuesday repeated his claim that Trump offered Canada the best trade deal and said he’s not sure why Carney walked away.

He told right-wing Breitbart News that “we will see if this can be walked back,” while downplaying the impact of Canada’s tariffs on the U.S. economy.

“If I were the Canadians I would be careful because they wanted the benefits of being a state without being a state,” Bessent said. “Now that the arrangements may be splintering everyone’s going to be coming to our side.”

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