On September 16, 2026, President Trump issued a Presidential Memorandum (the “Memorandum”) titled “Restoring Reciprocity in Government Procurement,” which aims to remove Canadian origin items from the U.S. government procurement system.  The Memorandum provides few details on how this policy goal should be effectuated, but directs the following actions:

• The Office of Management and Budget (“OMB”) Director and U.S. Trade Representative, in coordination with the FAR Council, and in consultation with other senior officials as appropriate, shall “to the extent appropriate and consistent with law, identify and take all steps permitted by applicable law with respect to Canadian origin items in the Federal civil procurement system that can, where warranted, be removed or made non-available for purchase.”
• The OMB Director, in consultation with other senior officials as appropriate, shall also “notify” relevant executive departments and agencies of domestic alternatives to Canadian origin items, “to the extent permitted by law.”

As the Memorandum recognizes, Canada and the United States are both parties to the World Trade Organization Government Procurement Agreement (“WTO GPA”), a multilateral trade agreement intended to facilitate increased transparency and market access in government procurement among its members.  Under the WTO GPA, the United States is generally obligated to treat goods and services of Canada as favorably as goods and services of the United States and other GPA Members in covered procurements, prohibiting origin-based discrimination in such circumstances.  The Memorandum is clear that the directed actions should be taken to the extent permitted by existing law, and it is not clear how those actions will be squared with the United States’ obligations under the WTO GPA.  We note that the Trump Administration has repeatedly invoked security exceptions to WTO and other trade agreements in imposing tariffs or other trade measures otherwise inconsistent with such agreements in recent months.  It is also not clear by what standard a good in the U.S. federal procurement system would be determined to be of “Canadian origin.” 

Issuance of the Memorandum follows a recent escalation in U.S.-Canadian economic tensions, which have been tied in part to Canadian actions in the area of procurement taken in response to U.S. tariff measures.  The Memorandum states that the U.S. directives are in response to actions taken by Canada, including the “Buy Canadian” policy implemented in December 2025, and suggests that the directives could be rescinded if Canada changes its policies.  We will continue to monitor developments related to the Memorandum and report on them here.