The Canadian government is set to implement a new procurement policy that mandates the use of domestically produced steel, aluminum, and wood products in construction and defense projects. This new initiative is intended to help Canadian industries affected by past trade actions and litigation. It’s scheduled to come into force on December 16, 2025.
Procurement Minister Joël Lightbound announced the strategy earlier this fall, emphasizing that the federal government is committed to “putting Canadian workers and industries first.” The new policy mandates that any contract of $25 million and above must give preference to Canadian companies and materials. This order is a step in the right direction, helping to secure Canadian supply chains and ensuring local products are given preference in federal procurement processes.
This move directly counters the challenges that Canadian industries experienced due to U.S. President Donald Trump’s trade war. This terrible conflict was especially hard on the steel and aluminum industries. By prioritizing Canadian-made materials, the government is working to preserve these industries and create stability across the Canadian economy.
Minister Lightbound further stressed the significance of this policy to advance domestic production. He promised that it will do this in addition to creating thousands of jobs by improving the overall resilience of Canadian supply chains. We welcome the government’s commitment to make this policy happen. It seeks to increase the value of local ingredients and workforce, giving us a win in the future global marketplace.
The phased implementation of this policy is a testament to our government’s commitment to encouraging a strong economy while ensuring public safety. The policy requires the use of locally manufactured or processed materials. This change is intended to enhance investment in Canada’s manufacturing base and address the economic impact of global trade tensions.
