Explainer: 'Buy Canadian', what Ottawa’s new policy means for young entrepreneurs

“Buy Canadian Instead” sign stands among liquor displays in a Vancouver store, part of a federal push to steer public spending toward domestic suppliers. (Credit: Canadian Press)

Prime Minister Mark Carney’s 2025 budget announcement in Fredericton last week introduced a major shift in federal spending, with new measures aimed at making Canada its own best customer.

The budget includes $186 million to implement a Buy Canadian policy across federal departments and $79.9 million for a Small and Medium Business Procurement Program. 

Ottawa states the measures could steer up to $70 billion in future public investment toward Canadian-made materials, technology and services.

However, for students and recent graduates launching small businesses in New Brunswick, the changes could bring both opportunity and uncertainty.

Under Buy Canadian, federal departments will be required to prioritize domestic suppliers.

When buying abroad is unavoidable, contracts must still include Canadian content and be sourced from “trusted trading partners.” The policy will also apply to major housing, energy, infrastructure and defence initiatives.

The new procurement program is designed to make it easier for small and medium-sized businesses to compete for federal contracts, offering streamlined support and fewer barriers.

For youth-led start-ups, this could mean better access to a market that has traditionally been hard to enter.

Opportunities and risks

Student entrepreneurs in Fredericton operate in fields ranging from design and media services to tech, consulting and clean innovation. 

A single federal contract can help early-stage businesses build credibility, create paid work and secure future investment.

But some analysts warn that Buy Canadian, introduced amid heightened global trade tensions, may complicate relationships with international partners. 

While the policy could strengthen local supply chains, it may also limit competitiveness for small firms hoping to scale beyond Canada.

The benefits for students will also depend on whether procurement becomes easier to navigate. Without meaningful simplification, young founders may still face barriers to federal opportunities.

What to watch for

Finance Minister François-Philippe Champagne said that the budget is about building economic resilience. 

For young entrepreneurs, the coming months will reveal whether Buy Canadian becomes a catalyst for growth or another challenge in an already competitive landscape.