Question Period Note: Impact of Tariffs on Procurement

Public Services and Procurement Canada is working to proactively address the impact of potential tariffs on procurement.

• Public Services and Procurement Canada is committed to supporting the Government’s efforts to respond to the imposition of United States tariffs on Canadian goods and to mitigate their impact on Canadian workers and businesses
  • Public Services and Procurement Canada is closely monitoring the trade situation in the United States, assessing potential impacts on existing projects

Tariffs tend to have an upward impact on the price of goods and services, including those procured by the federal government. Canada and the United States are both party to the World Trade Organization Agreement on Government Procurement (WTO-GPA), which requires that each country open certain procurements to suppliers of the other.

Public Services and Procurement Canada is closely monitoring the situation in the United States and assessing the potential impacts of tariffs on existing projects, including federal procurements.

• It is estimated that United States suppliers win approximately 10% of the value of all Canadian federal procurement contracts, including defence
  • According to the Government’s Proactive Disclosure data, in Fiscal Year 2023-2024, suppliers with a location in the United States were awarded approximately $617 million in federal non-defence procurement contracts
  • Over the past three fiscal years, Public Services and Procurement Canada has awarded an average of approximately $1.3 billion per year to suppliers located in the United States for both defence and non-defence procurement. This value excludes contracts awarded to Canadian-based suppliers that are subsidiaries of US companies and contracts under the US Foreign Military Sales program
  • These amounts do not take into account the origin of the goods and services, i.e. where they are made