US Limits Canadian Goods in Federal Procurement via New Memo
Federal contractors must review supply chains for Canadian-origin items as OMB identifies products for removal from civilian agency purchases.
On September 16, 2026, President Trump signed a memorandum titled “Restoring Reciprocity in Government Procurement,” directing the Office of Management and Budget (OMB) and the U.S. Trade Representative (USTR), with the FAR Council, to identify Canadian‑origin items that could be removed from or become unavailable for federal civilian procurement. The effort responds to Canada’s “Buy Canadian” policies, which favor domestic suppliers, and establishes a process rather than an immediate blanket ban. OMB must pinpoint eligible Canadian products, alert agencies to domestic alternatives, and report regularly to the president. The USTR will monitor how Canada treats U.S. goods in its procurement markets and can recommend restoring access if Canada changes its stance. Agencies are empowered to implement the memo within existing authorities. Federal contractors should act quickly: audit their supply chains for Canadian components, identify alternative sources under the Trade Agreements Act, monitor OMB’s forthcoming lists, prepare challenge assessments, and track any shifts in agency solicitations or country‑of‑origin requirements. Counsel and clients must watch OMB’s initial identifications and agency implementation notices for the real‑world impact and possible diplomatic adjustments.