FREDERICTON — New Brunswick will prohibit most of its contractors from supplying American goods and services for large government contracts beginning Oct. 1, Premier Susan Holt announced Thursday as Ottawa and provincial officials respond to fresh trade measures announced by the United States.
Scope and rationale of the rule
The new restriction targets contracts worth more than $5 million, a threshold Premier Holt said would encompass about 90 per cent of the province’s procurement spending. The rule applies to Canadian suppliers bidding on provincial work; Holt said it is designed to ensure the government receives goods and services sourced from Canada or New Brunswick where alternatives exist.
“We want to get at that, and take it a step further, and do everything we can to make sure that we have found those New Brunswick and Canadian alternatives where they exist,”
The announcement comes days after U.S. President Donald Trump unveiled plans to ban the import of some Canadian products and to impose additional tariffs on others — moves that the province says could affect industries such as brewing and certain foodstuffs, along with aluminium, furniture and some wood and paper products.
Who will be affected?
Holt indicated the measure is aimed principally at large procurement files. She said American companies presently hold roughly 1 per cent of New Brunswick’s government contracts, but that U.S. goods and services continue to arrive indirectly through Canadian suppliers. The government would now require those suppliers to replace U.S. inputs with Canadian alternatives where available.
The premier acknowledged there will be exceptions where no suitable Canadian alternative exists, and said officials are still determining how much switching to domestic suppliers might cost businesses.
Practical details
- Effective date: Oct. 1
- Contract threshold: $5 million and above
- Estimated coverage: about 90% of provincial procurement contracts
Holt said the policy builds on an earlier directive from last year that limited contracting with American companies, with carve-outs where no alternatives were available. The new rule goes further by restricting the use of U.S. products and services by Canadian suppliers themselves on high-value contracts.
Business response and unanswered questions
The province has not yet released a detailed implementation plan, procurement guidance or a cost estimate for suppliers who must find Canadian substitutes. Premier Holt said the government is relying on suppliers to identify viable local sources and to work with officials to ensure continuity of services and delivery schedules.
Procurement experts and affected businesses are likely to seek clarification in the weeks ahead on:
- how the province will verify compliance;
- what documentation suppliers must provide when they claim an exception; and
- whether transitional assistance or flexibility will be offered for contracts already in the procurement pipeline.
| Item | Figure |
|---|---|
| Contract threshold | $5 million |
| Estimated share of contracts covered | 90% |
| Current share held by U.S. companies | 1% |
Context: trade tensions and local impact
New Brunswick’s move is a provincial response to broader bilateral trade friction. The White House announcement earlier this week targeted several Canadian goods with bans or additional tariffs, prompting provincial leaders to examine how governments can shield local industries and supply chains.
In New Brunswick, sectors that rely on cross-border supply lines could see added pressure to source domestically. The government has framed the policy as a way to protect and promote Canadian suppliers and to ensure public dollars support local jobs and industry where feasible.
Next steps
The province expects to provide further operational details before the Oct. 1 start date. Suppliers and contractors bidding on high-value provincial work should begin reviewing their supply chains and be prepared to document efforts to identify Canadian alternatives, or to flag where no viable substitute exists.
This announcement underscores the fragile balance for a province with two linguistic communities and a range of industries that depend on both domestic and cross-border trade. Officials say their priority is to secure government procurement while minimising disruption to projects and to the businesses that support them.
Additional information and guidance are expected from the provincial procurement office in the coming weeks.
