Ontario Premier Doug Ford announced on Monday that he is canceling a CA$100 million (US$68 million) contract with Elon Musk's Starlink, in direct retaliation to President Donald Trump's newly announced 25% tariff on most Canadian imports. Ford said his government will no longer do business with U.S. companies, putting billions of dollars in future procurement spending off-limits to American firms. The move comes amid a broader crackdown by Canadian leaders, including Prime Minister Justin Trudeau, who have vowed to respond in kind to Trump's tariff measures.
In November, Ontario signed an agreement for Starlink's satellite internet to connect 15,000 rural and remote homes to high-speed broadband by June 2025. That partnership is now in jeopardy after Ford took to X to protest Trump's tariffs. "Starting today and until US tariffs are removed, Ontario is banning American companies from provincial contracts," Ford wrote, declaring that the new U.S. duties left him little choice but to retaliate.
Ford underscored the economic stakes for U.S. corporations and repeated his criticism of Trump's policies. "They only have President Trump to blame," he said, adding that Ontario's government was pulling out of the Starlink deal with immediate effect. "We'll be ripping up the province's contract with Starlink. Ontario won't do business with people hellbent on destroying our economy," he stated in a post on X.
He elaborated on the scale of future losses for American firms, pointing to Ontario's substantial investment plans. "Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario," Ford wrote. He continued, "we're going one step further" by "ripping up the province's contract with Starlink." He also reiterated, "Ontario won't do business with people hellbent on destroying our economy."
Ford, known for his hard-line stance, said the tariffs gave Canada no choice but to respond vigorously. "Canada didn't start this fight with the US, but you better believe we're ready to win it," he declared, warning that U.S. exporters would feel the impact of Ontario's procurement ban.
Trump's tariff plan, which includes a 25% levy on most Canadian imports but 10% on oil, took markets by surprise over the weekend. Canada answered by slapping 25% duties on $155 billion worth of American goods, targeting items such as clothing, vegetables, fruit juices, and bourbon. Trudeau spoke out forcefully on the matter, insisting that Canadian citizens stand together in the face of economic uncertainty.
"Many of us will be deeply affected. A lot of people will go through dark times. We're asking you to support one another, to be there for your friends, your neighbors, and your fellow Canadians," Trudeau said. He also warned that Americans would not escape the fallout: "This is a choice that yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people."
Speaking about the potential risk to cross-border industries, Trudeau continued: "As I have consistently said, tariffs again against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities. They will raise costs for you, including food at the grocery stores and gas at the pump."
The canceled Starlink agreement underscores how the trade conflict is reverberating beyond conventional goods, reaching into technology and infrastructure projects. Musk, who donated more than $200 million to Trump's election campaign, recently emerged as an advisor in the newly established "department of government efficiency."
- Key Data Points:
- Starlink Contract Value: CA$100 million (US$68 million).
- Ontario Procurement: CA$30 billion (US$20 billion) annual spending, plus CA$200 billion (US$137 billion) in building plans.
- Canadian Tariffs: 25% on US$155 billion worth of American goods.
- US Tariffs: 25% on most Canadian imports, 10% on oil.
Musk's team did not respond to requests for comment, and it remains unclear whether the White House might negotiate exemptions for vital Canadian trade partnerships. Trudeau, who is set to leave office in six weeks, called the tariffs a "threat targeting the entire country." Meanwhile, Ford's ban signals that the standoff could deepen, leaving U.S. businesses on the outside of major Canadian infrastructure deals for the foreseeable future.