President Donald Trump is escalating the trade dispute with Canada by directing the General Services Administration and the U.S. Trade Representative to begin removing Canadian-origin products from federal purchasing schedules unless Ottawa provides what he called “full and fair reciprocity” for American farmers and businesses.

President Trump announced the move Tuesday as Canada implemented new retaliatory tariffs on U.S. goods, further intensifying an increasingly strained trade relationship between the two countries.

Trump said he was directing the GSA, working with USTR, to take “all necessary steps” to remove Canadian-origin products from the agency’s Multiple Award Schedules unless Canada restores reciprocal access for American companies and farmers.

The GSA’s Multiple Award Schedules allow federal agencies to purchase a wide range of commercial products and services through pre-negotiated government contracts. Trump’s directive therefore targets Canadian products sold through the federal procurement system rather than imposing a blanket prohibition on all Canadian imports.

Trump accused the Canadian government and Canadian provinces of preventing American small businesses and companies from participating in their government procurement markets. His administration is seeking greater access for U.S. businesses as trade negotiations between Washington and Ottawa remain stalled.

The announcement came Prime Minister Mark Carney’s government put retaliatory tariffs into effect, ranging from 15% to 50%, covering roughly $27.6 billion worth of U.S. imports, including products in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

The Canadian measures were imposed in response to U.S. tariffs on Canadian goods. Canada’s government has said it wants to reduce its economic dependence on the United States, while Carney argued Tuesday that Canada needs to diversify its trade relationships and strengthen economic ties elsewhere.

Trump’s latest action represents another escalation in the dispute. He has also threatened Canadian aircraft manufacturer Bombardier’s ability to sell aircraft in the United States unless the company moves manufacturing into the country.

The White House move could put additional pressure on Ottawa as both countries face growing uncertainty over the future of their trade relationship and the broader North American trade framework.