Federal government’s ‘Buy Canadian’ policy takes effect

December 16, 2025

RED FM News Desk

The federal government’s ‘Buy Canadian’ policy officially takes effect today, with Ottawa stating it will fundamentally change the way it purchases goods and services across the country.

First announced last Fall, the strategy is designed to ensure Canadian products and workers are prioritized in federal procurement decisions to protect and bolster Canadian industries. The policy applies to major new government projects, housing offices, defence procurement, and community infrastructure projects that receive federal funding.

The first phase of the policy, which begins today, mandates that contracts valued at $25 million or more must prioritize Canadian businesses and materials.

Furthermore, the policy requires that Canadian steel, aluminum, and wood products manufactured or processed in Canada be used in construction and defence projects. This is specifically aimed at supporting industries that were hit hard by trade disputes, including those initiated by U.S. President Donald Trump’s administration.

Procurement Minister Joël Lightbound stated that the federal government is “putting Canadian workers and industries first” through the policy, adding that it will help ensure Canadian supply chains remain resilient and strong.