On September 9, President Trump announced plans to remove Canadian-origin products from the US General Services Administration (GSA) procurement schedules. These schedules facilitate over $50 billion in annual government purchasing.
Shares of Canadian companies with exposure to US federal contracts declined following the announcement. CGI Inc., WSP Global, AtkinsRealis, Stantec, and Aecon Group saw their stock prices fall by more than 2% in early trading.
Bombardier experienced a decline of 7–8%, with shares trading around CAD 293.49. This drop was influenced by both the GSA directive and separate threats regarding the potential blocking of the company's aircraft sales in the US market.
Analyst Doug Taylor estimates that US government revenue represents 15–20% of the total revenue for CGI Inc. The market is currently reacting to uncertainty regarding the definition of Canadian-origin products and the potential impact on IT, engineering, and construction sectors.
The announcement follows Canada's decision to impose retaliatory tariffs on approximately $20 billion worth of US goods on September 8. Additionally, the US plans to implement import bans on specific Canadian products, such as alcohol and dairy, starting September 29.
