Politics

Trump’s latest trade threat weighs on Canadian firms with U.S. contracts

Share prices for IT consulting company CGI Inc., engineering firms WSP Global Inc., AtkinsRealis Group Inc. and Stantec Inc., and construction firm Aecon Group Inc. have all dropped

Shares of Canadian companies that do business with the U.S. government fell following President Donald Trump’s threat to bar Canadian-origin products from being sold to federal contractors.

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“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.”

Share prices for IT consulting company CGI Inc., engineering firms WSP Global Inc., AtkinsRealis Group Inc. and Stantec Inc., and construction firm Aecon Group Inc. had all dropped by more than 2 per cent in Toronto as of Wednesday afternoon.

It’s not yet clear how “Canadian-origin products” are defined, and whether the directive includes services or parent companies of U.S. subsidiaries.