‘Buy Canadian’ policy comes into effect, changing rules for federal procurement
Posted December 16, 2025 11:09 am.
Last Updated December 16, 2025 1:14 pm.
The federal government’s ‘Buy Canadian’ policy takes effect today and Ottawa says it will fundamentally change the way it purchases goods and services.
At a press conference Tuesday, Procurement Minister Joël Lightbound announced that Canadian suppliers and content will be prioritized for federal procurements.
“Canada needs to be its own best customer,” Lightbound said.
The policy applies immediately to contracts valued at $25 million and over and will be expand to contracts valued at $5 million and over by the spring of 2026, the minister said.
Announced earlier in the fall, the strategy is meant to help protect Canadian industries amid U.S. President Donald Trump’s trade war.
The policy applies to the government’s new major projects and housing offices, defence procurement, and community infrastructure projects funded by the federal government. It will also apply to “Crown corporations and grants and contribution programs of the federal government”, according to Lightbound.
The new regime 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 the trade war.
“These materials must be manufactured or processed in Canada, not just sold by distributors, so as to ensure that federal projects genuinely drive demand for Canadian-made material,” Lightbound said.
Lightbound added that with the policy favouring Canadian businesses, “we are fully leveraging public procurement as an economic development tool, strengthening supply chains, supporting jobs, and helping Canadian businesses compete globally.”
— With files from The Canadian Press
