Key facts
- President Trump directed the GSA to remove Canadian products from its Multiple Award Schedules.
- The action is a response to Canada's alleged restrictions on American businesses in its government procurement markets.
- The GSA and SBA previously removed 22 falsely labeled foreign-made flatware products from GSA Advantage!.
- The U.S. claims Canada has imposed discriminatory tariffs and bans on American goods, including vehicles and alcohol.
- The U.S. has a trade deficit with Canada and accuses it of refusing reciprocal market access.
U.S. President Donald Trump announced on Tuesday that he is directing the General Services Administration (GSA) to take steps to remove Canadian-origin products from the agency's Multiple Award Schedules. This action is contingent on Canada restoring "full and fair reciprocity" for American farmers and companies, according to Trump's statement on Truth Social.
Trump stated that the Canadian government has banned American small businesses and companies from selling into their government procurement markets. He emphasized that the GSA, in coordination with the U.S. Trade Representative (USTR), should take all necessary steps to remove these products unless Canada rectifies the situation, marking a new escalation in the trade dispute between the two countries.
Previously, following a White House Small Business Summit, the U.S. Small Business Administration (SBA) and GSA announced actions to remove nearly two dozen foreign product offerings from GSA Advantage!, the list of approved vendors for federal agency procurement. This move supported President Trump's directive to prioritize purchasing American-made goods. The action was partly in response to concerns that Chinese companies were falsely marketing products as "Made in America" on GSA Advantage!.
As a result, 22 falsely labeled foreign-made flatware product offerings were identified and de-listed. SBA Administrator Kelly Loeffler stated that the Trump Administration would not tolerate foreign imposters hijacking "Made in America" labels or undercutting honest American small businesses. Matthew Roberts, CEO of Sherrill Manufacturing, expressed appreciation for the administration's efforts to support American manufacturing.
The White House also detailed alleged Canadian trade abuses, including discriminatory tariffs and company-specific quotas on U.S. motor vehicles, bans on American wine, beer, and spirits, and highly restrictive dairy tariffs. The U.S. claims Canada has maintained a persistent average annual goods trade deficit of approximately $50 billion over the last decade while refusing reciprocal access.