Ontario Introduces Buy Ontario Act to Counter US Tariffs

The Government of Ontario introduced the Buy Ontario Act on November 20, 2025, establishing a procurement hierarchy that requires public-sector organizations to prioritize goods and services from Ontario suppliers, followed by other Canadian providers. The legislation applies to provincial ministries, agencies, municipalities, and their contractors, replacing the Ontario Business Initiative Act.

Minister Stephen Crawford stated the policy is a response to economic uncertainty and tariffs imposed by U.S. President Donald Trump. The province aims to keep a larger portion of its $30 billion in annual public procurement spending within Ontario to protect local livelihoods. To ensure compliance, the act includes fines and the ability to bar vendors from future contracts. International procurement remains an option only if local or national suppliers cannot meet reasonable cost or time requirements.

As part of a broader $220-billion provincial building plan, the government is creating a domestic vendor list. An immediate application of this strategy is a single-source contract with Alstom Transport Canada to manufacture new TTC subway cars in Thunder Bay. Minister Rob Flack noted that many municipalities have already demonstrated leadership in prioritizing provincial products and workers.