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

The federal government’s ‘Buy Canadian’ policy took effect Tuesday 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 came into effect Tuesday, requires that contracts valued at $25 million or more prioritize Canadian businesses and materials. It’s expected to expand to cover all contracts valued at $5 million and more by the spring.

The policy also requires that Canadian steel, aluminum and wood products manufactured or processed in Canada be used in construction and defence projects requiring at least $250,000 in materials. It’s a measure to support industries hit hard by U.S. President Donald Trump’s trade war.

Procurement Minister Joël Lightbound said the federal government is “putting Canadian workers and industries first” and will help to ensure Canadian supply chains remain strong.

“This policy creates demand across the country, from steelworkers in Hamilton to aluminum producers in Saguenay—Lac-Saint-Jean and lumber mills in La Tuque and Prince George, while giving clear advantages to suppliers who invest, innovate and produce here at home,” Lightbound said in a media statement.

“It’s a major step toward stronger supply chains, good jobs and a more resilient Canadian economy.”

In a social media post Tuesday, Prime Minister Mark Carney said the approach will help the federal government “build Canadian” by becoming its own “best customer.”

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