Ontario Implements Procurement Restrictions in Response to U.S. Tariffs

In a decisive move to protect Ontario’s economic interests, the provincial government has introduced a new Procurement Restriction Policy, effectively limiting U.S.-based businesses from participating in Ontario’s public sector procurements. This policy, retroactive to March 4, 2025, was enacted in direct response to tariffs imposed by the United States on Canadian products and services.​  

On March 4, 2025, Premier Doug Ford announced that Ontario would no longer engage in business with U.S. companies as long as the U.S. tariffs remained in place. This declaration was followed by the formal release of the Procurement Restriction Policy on April 4, 2025, under the authority of the Management Board of Cabinet Act and the Broader Public Sector Accountability Act, 2010. The policy aims to level the playing field for Ontario-based companies by restricting American firms’ access to public procurements within the province. ​ 

• Scope and Application: The policy applies to all new procurements of goods and services, regardless of value or procurement method (invitational, open competitive, or non-competitive). It encompasses all government entities and designated Broader Public Sector (BPS) organizations.  
• Exceptions: Procurement from a U.S. business is permitted only if:​  
  • The U.S. business is the sole viable source for the required good or service.​  
  • The procurement cannot be delayed due to risks to public health and safety or other critical factors. Such exceptions require a detailed business case and approval from the Deputy Minister or equivalent authority. 
• Definition of U.S. Business: For the purposes of this policy, a “U.S. business” is defined as a supplier, manufacturer, or distributor that:​  
  • Has its headquarters or main office located in the United States.​  
  • Has fewer than 250 full-time employees in Canada at the time of the procurement process. ​ 

The Ontario Society of Professional Engineers (OSPE) recognizes that these procurement restrictions may have significant implications for engineering projects and collaborations involving U.S. firms. Projects that previously relied on partnerships with American companies may need to seek alternative suppliers or adjust project timelines to comply with the new policy.​ 

OSPE is actively monitoring the situation and engaging with policymakers to ensure that the engineering profession’s interests are considered. Members are encouraged to review their current and upcoming projects to assess potential impacts and explore local alternatives where necessary.​ 

The Ontario government has indicated that the Procurement Restriction Policy will be reassessed if the U.S. tariffs are lifted. In the meantime, OSPE will continue to provide updates and support to its members as the situation evolves 

For detailed guidance on the policy, members can refer to the official documentation provided by Supply Ontario.  

OSPE remains committed to advocating for policies that support the engineering community and Ontario’s broader economic interests during these challenging times.