‘Buy Canadian’ policy comes into effect, changing rules for federal procurement

OTTAWA — The federal government’s ‘Buy Canadian’ policy takes effect today and Ottawa says it will fundamentally change the way it purchases goods and services.

Announced earlier in the fall, the strategy is meant to ensure Canadian products and workers are prioritized in federal procurement decisions to help protect Canadian industries.

It applies to the government’s new major projects and housing offices, defence procurement, and community infrastructure projects funded by the federal government.

The first stage of the policy, which comes into effect today, requires that contracts valued at $25 million or more prioritize Canadian businesses and materials.

It also requires that Canadian steel, aluminum and wood products manufactured or processed in Canada be used in construction and defence projects, supporting industries hit hard by U.S. President Donald Trump’s trade war.

Procurement Minister Joël Lightbound says the federal government is “putting Canadian workers and industries first” through the policy, and that it will help ensure Canadian supply chains remain strong.

This report by The Canadian Press was first published Dec. 16, 2025.

Alessia Passafiume, The Canadian Press