Ontario’s government plans to introduce legislation that would require public sector organizations to prioritize Ontario-made goods and services in procurement decisions, a move aimed at protecting workers and businesses from U.S. tariffs.
The Buy Ontario Act, 2025, would apply to all provincial ministries, agencies, broader public sector entities, municipalities, and their contractors and subcontractors working on Ontario’s more than $220 billion infrastructure plan, according to a government announcement.
“Ontario workers and business owners’ livelihoods are under attack from President Trump and his tariffs, and they’re counting on us to step up,” said Stephen Crawford, minister of public and business service delivery and procurement.
Procurement policy changes
The proposed legislation would mandate that public sector organizations prioritize Ontario goods and services first, followed by Canadian products, while maintaining value for taxpayers. The province spends more than $30 billion annually on procurement.
Public sector contracts would continue to be awarded based on weighted factors including price, expertise, and experience. However, the weight given to local goods and services in supply chains would increase through policy directives.
Organizations and vendors that fail to comply could face penalties including holdbacks, fines, performance management measures, and exclusion from future procurement opportunities.
Exceptions and implementation
The policy would allow procurement outside Canada when Ontario or Canadian goods and services cannot be obtained at reasonable cost or within timeframes that maintain taxpayer value.
The province is working to establish vendor lists of Ontario and Canadian suppliers to support their inclusion in infrastructure and procurement processes. The government said it is taking steps to strengthen Ontario’s domestic capacity to meet the province’s needs.
Municipal partnerships
Ontario has already worked with municipalities on similar procurement approaches. Earlier this year, the province partnered with Toronto and the federal government to support the city’s decision to procure new Line 2 TTC subway cars manufactured by Alstom workers in Thunder Bay.
“Many municipalities have already shown leadership in prioritizing Ontario workers and products when it comes to their choices,” said Rob Flack, minister of municipal affairs and housing.
Economic context
The legislation forms part of the province’s nearly $30 billion tariff relief and support plan, first announced in the 2025 Ontario budget. The Ontario Together Trade Fund will help small and medium-sized businesses make investments to strengthen operations and expand market reach, according to the government.
“As U.S. tariffs continue to undermine the global economy, prioritizing the procurement of Ontario-made goods, services and products has never been more important,” said Vic Fedeli, minister of economic development, job creation and trade.
The Buy Ontario Act would also extend selected provisions of the Protecting Condominium Owners’ Act, 2015 for one year and broaden authorities for safety-related signage near school zones through proposed Highway Traffic Act amendments.
