ACEC-Ontario Tariff Impact Scan No. 2 (April 2025) |
ACEC-Ontario is monitoring the impact of tariffs, including any changes to procurement policies. Please review the recent changes below and let us know how your firm is impacted.
Ontario's New Procurement Restrictions
The Ontario Government has released the details of its policy that restricts public sector buyers from procuring goods and services from U.S. businesses.
According to the Procurement Restriction Policy, a U.S. business means “a supplier, manufacturer or distributor of any business structure (includes a sole proprietorship, partnership, corporation or other relevant business structure) that:
- has its headquarters or main office located in the U.S., and
- has fewer than 250 full-time employees in Canada at the time of the applicable procurement process.”
- has fewer than 250 full-time employees in Canada at the time of the applicable procurement process.”
It goes on to state that “If a bidder or vendor is a subsidiary of another corporation, part 1 of the definition above is met if that bidder or vendor is controlled by a corporation that has its headquarters or main office located in the U.S.”
Moreover, the Policy only applies to new procurements (as of March 4th) at any value. It does not apply when public sector entities use Vendor of Record arrangements or other arrangements available to public entities. It also does not apply to municipalities, subcontractors, or contract extensions.
Please review further policy details by visiting our member bulletin which includes: the full policy, the public sector guide, and the FAQ page.