The distinction might seem subtle, but even then it’s not illegal.

Also it’s not every contract between companies and the state. Texas uses 10+ employees companies and 100,000+$ contracts as the minimum threshold before language must be added to the contract during the terms of the contract.

But after signing such a contract the company is still only bound by a contract. Breaking contracts happens all the time it’s not illegal. Excluding Fraud etc it becomes a civil rather than a criminal matter.

It's illegal for any company that works with state agencies to boycott any of our allies.. Israel is a common example because most (all?) countries surrounding it in the middle east try to sneak in Israel boycott terms into every little contract, so it's the most common.

But the same is true if someone wanted to boycott Canada. That company wouldn't be able to work/contract with state agencies.

In what way is that surreal or surprising?