The federal government is closely examining the company it does with American companies as it considers the means to postpone against US President Donald Trump pricing.
In an interview with the Canadian press, the chairman of the Treasury Board, Ginette Petitpas Taylor, member of the Government Commission for Canadian-American Relations, said the government is considering “where contracts are provided, what contracts are where.”
“Everything is on the table,” said the minister. “We certainly hope that we can avoid prices at all costs, but if the prices arrive, we will respond appropriately.”
When asked how many contracts the federal government has with American companies, Petitpas Taylor said: “All the departments are at the moment to look at where these contracts are, where they are located.”
“We continue to work in collaboration in all the departments,” she said. “I think we are all on the edge and, you know, while waiting with a breath on what will happen.”
Trump threatens to impose high prices on imports from Canada and other countries.
He said automobile tasks will come into force around April 2. He did not say what countries they would target or their summit.
The president also announced last week a plan aimed at imposing what he called “reciprocal prices” from April – higher American rights to correspond to the tax rates that other countries invoice on American imports.
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At the start of this month, Trump has paused for several weeks, his plan indicated to hit Canada and Mexico with 25% of the tasks between cards, with a 10% lower sample on Canadian energy.
He also signed decrees to impose prices of 25% on all imports of steel and aluminum in the United States, including Canadian products, from March 12.
Ottawa’s reprisal plan was to start with an initial price of 25% out of $ 30 billion in American goods in early February, with prices on $ 125 billion in goods to follow three weeks later. These measures have been interrupted.
While Petitpas Taylor said that the government was considering all the reprisal options, a spokesperson for the Minister of Public Services and Purchases Jean-Yves Duclos would not say if the government plans to end contracts with American companies.
“Our government closely monitors the commercial situation in the United States, assessing the potential impacts on existing projects and exploring the use of price and non-tariff countermeasures to have a balanced and strong response if necessary,” said the secretary of Duclos press, Mathis Denis.
When asked how many government contracts apply to American companies, public services and Canada’s purchases, Michèle Larose, said the ministry does not collect “specific data” on all federal contracts.
The federal report on public accounts shows that Canada spent $ 20.7 billion for outsourcing in 2023-24, compared to $ 18.5 billion in 2022-2023, $ 17.5 billion in 2021-2022 and $ 14.7 billion in 2020-2021.
In a statement published last month, the candidate for the liberal management Chrystia Freeland asked that American companies be prohibited from teaching on Canadian Federal Markets contracts – other than those of defense – and that federal government agencies cease to buy goods from American companies.
Marcia Mills is a partner and co -founder of the National Security Group of Fasken and member of the government and political law teams of the law firm. She said that the government is considering tearing a contract with an American company, it first needs to determine if it can replace the supplier and how much it would cost it to end the contract.
She said that the government should wonder if an American company is directly involved in the contract or is just a point on the supply chain – and that it must also prepare for the US government adopting the same approach with suppliers Canadians.
“If you are going to cut your supply chain, you should know where you are going to get your goods and services,” said Mills.
Mills said Canada should not expect the cancellation of government contracts to have a lot of influence on the Trump administration.
“The Canadian government market is very low for an American supplier,” she said. “A large multinational company in the United States which has Canadian government contracts, I would not expect it to be an important part of their income.”
–The files by Sarah Ritchie and Kelly Geraldine Malone.
& Copy 2025 the Canadian press