Article content

Shares of Canadian companies that do business with the United States government fell following President Donald Trump’s threat to bar Canadian-origin products from being sold to federal contractors.

Sign In or Create an Account

or View more offersArticle content

“From now on, NO RECIPROCITY – NO ACCESS!” Trump said in a social media post Tuesday afternoon, saying Canadian and provincial governments ban U.S. firms from winning contracts in the country.

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

He directed the U.S. General Services Administration to work with the U.S. Trade Representative to “take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies.”

Article contentArticle content

Share prices for IT consulting company CGI Inc., engineering firms WSP Global Inc., AtkinsRealis Group Inc. and Stantec Inc., and construction firm Aecon Group Inc. all dropped by more than two per cent in Toronto on Wednesday morning.

Article content

It’s not yet clear how “Canadian-origin products” are defined, and whether the directive includes services or parent companies of U.S. subsidiaries.

Article content

CGI has “relatively material exposure” to U.S. government contracts, National Bank of Canada analyst Doug Taylor wrote in a client note. “We estimate U.S. government revenue could represent between 15 per cent to 20 per cent of CGI’s total revenue.”

Article content

But the company primarily sells services, not goods, in the U.S., which means CGI may be “potentially more insulated than the current scope of the language implies,” Taylor said. “Risk would become more meaningful if restrictions instead apply based on Canadian (parent) ownership, e.g., if U.S.-based subsidiaries of Canadian companies are also included.”

Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

CGI didn’t respond to requests for comment.

Article contentRead More

  1. Canada can afford to wait out Trump’s trade war, say two prominent policy vets
  2. Tim Houston: Now is the time for Canadians to find common ground and get things done
  3. Story continues belowThis advertisement has not loaded yet, but your article continues below.

Article content

Following the first round of U.S. tariffs in 2025, the Canadian government introduced a policy that favours local businesses in federal procurement and prioritizes Canadian materials in major construction and defence projects. The move came alongside a push to make Canada more self-sufficient and sovereign in digital capabilities.

Article content

Provinces have also announced limits to U.S. procurement. For example, the Quebec government said this week that it will reserve certain calls for tenders for Canadian firms, and Ontario has a policy that greatly restricts procurement from U.S. businesses while preferring local firms.

Article content

Bloomberg.com

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content