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Photo by Christinne Muschi/BloombergShares of Canadian companies that do business with the United States government fell following President Donald Trump’s threat to bar Canadian-origin products from being sold to federal contractors.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor“From now on, NO RECIPROCITY – NO ACCESS!” Trump said in a social media post Tuesday afternoon, saying Canadian and provincial governments ban U.S. firms from winning contracts in the country.He directed the U.S. General Services Administration to work with the U.S. Trade Representative to “take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies.”SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. 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Please try againShare prices for IT consulting company CGI Inc., engineering firms WSP Global Inc., AtkinsRealis Group Inc. and Stantec Inc., and construction firm Aecon Group Inc. all dropped by more than two per cent in Toronto on Wednesday morning.It’s not yet clear how “Canadian-origin products” are defined, and whether the directive includes services or parent companies of U.S. subsidiaries.CGI has “relatively material exposure” to U.S. government contracts, National Bank of Canada analyst Doug Taylor wrote in a client note. “We estimate U.S. government revenue could represent between 15 per cent to 20 per cent of CGI’s total revenue.”But the company primarily sells services, not goods, in the U.S., which means CGI may be “potentially more insulated than the current scope of the language implies,” Taylor said. “Risk would become more meaningful if restrictions instead apply based on Canadian (parent) ownership, e.g., if U.S.-based subsidiaries of Canadian companies are also included.”CGI didn’t respond to requests for comment.Following the first round of U.S. tariffs in 2025, the Canadian government introduced a policy that favours local businesses in federal procurement and prioritizes Canadian materials in major construction and defence projects. The move came alongside a push to make Canada more self-sufficient and sovereign in digital capabilities.Provinces have also announced limits to U.S. procurement. For example, the Quebec government said this week that it will reserve certain calls for tenders for Canadian firms, and Ontario has a policy that greatly restricts procurement from U.S. businesses while preferring local firms. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.