Trump orders removal of Canadian products from US federal purchasing lists amid trade dispute

US President Donald Trump on Tuesday ordered the country's federal purchasing agency to stop buying Canadian-made products amid a growing trade dispute with Ottawa.

Trump directed the General Services Administration (GSA) to work with the US Trade Representative's office to remove Canadian products from its approved vendor lists, known as the Multiple Award Schedules. He said those contracts are worth more than $50 billion a year.

"Everyone knows that Canada doesn't let our Great Dairy Farmers sell into the Canadian Market, and that the only reason Canada makes Autos is because of previous disastrous Trade Agreements while other Presidents were in Office," Trump wrote on Truth Social.

He accused Canadian federal and provincial governments of having "banned American Small Businesses and Companies from selling into their Government Procurement Markets," even though Canada has broad access to sell into similar US government markets, including those run by individual states.

"Canada has been ripping us off for years... That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY-NO ACCESS!" he said.

Trump added that the restrictions "should have been cut off years ago, by other Administrations," blaming their reinstatement on former President Joe Biden.

After trade talks between Canada and the US collapsed last month, the US moved to impose 50% tariffs on key Canadian goods.

In response, Canada's retaliatory tariffs on $20 billion worth of US goods took effect early Tuesday, escalating a trade war between the neighboring countries.

Canada clarified that the counter-tariffs only apply to goods originating from the US and will not affect shipments already in transit on the day of implementation.

The trade dispute has intensified dramatically under the Trump administration, with successive rounds of import taxes and retaliatory measures.

Trump has repeatedly criticized the Canada-US trade gap, pointing to it as a core reason for imposing tariffs and regularly alleging that Ottawa is "ripping off" America.