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ARTICLE · 15 APRIL 2025

New Procurement Restriction Policy: Ontario Responds To U.S. Tariffs

Blake, Cassels & Graydon LLP
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On April 4, 2025, the Ontario Government released a Procurement Restriction Policy (Policy) under the authority of the Management Board of Cabinet Act and the Broader Public Sector Accountability Act...

CanadaGovernment, Public Sector
Marianne Smith
Marianne Smith
Alyssa Shivji
Alyssa Shivji
Stephanie Console
Stephanie Console
Meaghan Parry
Meaghan Parry
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Background

On April 4, 2025, the Ontario Government released a Procurement Restriction Policy (Policy) under the authority of the Management Board of Cabinet Act and the Broader Public Sector Accountability Act, 2010. The Policy restricts United States (U.S.) businesses from accessing Ontario public-sector procurements and was released in response to U.S. tariffs on Canadian products and services. The Ontario Government has communicated that the Policy will be re-assessed if the tariffs are lifted.

Implementation

Retroactive to March 4, 2025, Ontario public-sector organizations are not permitted to enter into new contracts with U.S. businesses, except when a U.S. business is the only viable source for the good or service and the procurement cannot be delayed.

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