President Donald Trump has escalated his trade dispute with Canada, ordering the removal of Canadian-origin products from federal government procurement schedules. The move, announced via social media, targets billions of dollars in goods and services, with Trump accusing Canada of engaging in a "Canadian trade scam" and banning American small businesses from its government procurement markets.

The General Services Administration (GSA) has been instructed to "take all necessary steps to remove Canadian-origin products" from its Multiple Award Schedules, which account for over $50 billion in annual federal purchases. Trump stated that this action is in response to Canada's alleged exclusion of American firms and its own bans on certain U.S. dairy and automotive imports.

Trump indicated that the penalty could be rescinded if Canada restores "full and fair reciprocity" for American farmers and businesses. This suggests the order may serve as a bargaining tactic in ongoing trade negotiations.

This development follows a recent series of retaliatory measures. Just one day prior, Trump announced that Canadian aircraft manufacturer Bombardier would be barred from selling in the U.S. unless it manufactured its products domestically. "If they want our Market, they must build here, and stop treating America like a 'piggybank,'" Trump wrote on social media.

In January, the U.S. imposed a 50 percent tariff on over $20 billion worth of Canadian goods. Canada matched this action with equivalent tariffs on American products, which took effect on Tuesday morning. Trump has also announced further tariffs scheduled to begin on January 1, 2027, providing a potential window for further negotiations.

Bombardier, which has significant operations and employs thousands of Americans, particularly in Kansas, stated it values its partnerships in the U.S. and plans to continue investing in its employees and communities.

However, some Republican lawmakers have expressed opposition to the administration's actions. Senator Jerry Moran of Kansas highlighted Bombardier's contributions to his state and the importance of its presence to local workers and the supply chain, stating he contacted the administration to convey these concerns.

The dispute with Bombardier is not new; Trump previously threatened the company in January, calling for Canada to drop regulations affecting U.S. aircraft manufacturer Gulfstream.