Ontario Premier Doug Ford has announced the cancellation of the province’s $100-million contract with Elon Musk’s Starlink, citing U.S. President Donald Trump’s new 25% tariffs on Canadian goods.
Ford made the announcement on Monday, stating that Ontario would also ban American companies from bidding on provincial contracts until the tariffs are reversed.
“This is just one step—many more are coming,” Ford said during a campaign stop in Etobicoke. “The $100 million may be a small amount, but it sends a strong message to President Trump.”
Musk’s Response & Ford’s Justification
The Starlink deal, signed in November, aimed to bring high-speed internet to 15,000 rural Ontarians. However, Ford directly linked its cancellation to Trump’s trade policies.
“President Trump is to blame. Maybe Elon Musk can call his buddy. This is one of the consequences,” Ford remarked.
Musk, who owns Starlink through SpaceX and also serves as head of Trump’s Department of Government Efficiency (DOGE), had a brief reaction to Ford’s move.
“Oh well,” Musk wrote on X, the social media platform he owns.
Ford reassured Ontarians that no payments had been made to Starlink and said his government was ready for potential legal action.
“We didn’t break any rules. The USMCA deal was violated by them, not us. I never start a fight, but I make sure to win it,” he said.
Trump’s Tariffs & Canada’s Response
The new tariffs, signed by Trump on Saturday, impose:
- 25% duties on all Canadian goods
- 10% tariffs on Canadian oil, natural gas, and electricity
In response, Prime Minister Justin Trudeau announced Canada’s own counter-tariffs, including a 25% levy on $155 billion worth of U.S. exports such as alcohol and fruit.
Trump and Trudeau spoke on Monday morning and are expected to discuss the tariffs again later in the day. While Trump called the conversation “good,” he insisted that Americans were “not treated well by Canada.”
Ontario’s Economic Retaliation
Ford revealed that Ontario spends $30 billion annually on government procurement—funds that U.S. businesses will now lose access to due to the trade war.
“I don’t care if it’s a cracker or a toothpick—we’ll do everything we can to produce it locally or buy it from an Ontario-based company,” Ford stated.
He also predicted rising inflation and interest rates on both sides of the border if the tariffs persist, warning they could cost Ontario 500,000 jobs.
Political Reactions & Ontario’s Snap Election
Ford’s decision comes amid criticism from opposition leaders ahead of Ontario’s early election on Feb. 27.
- Liberal Leader Bonnie Crombie previously called the Starlink deal a “sweetheart agreement” and praised its cancellation.
- NDP Leader Marit Stiles and Green Party Leader Mike Schreiner condemned Ford’s snap election as unnecessary.
Ford, however, defended the decision, arguing he needs a new mandate to handle Trump’s second term.
Ford’s Harsh Criticism of Trump
Despite previously expressing optimism about Trump’s return to the White House, Ford sharply reversed his stance on Monday.
“It’s been a disaster. I’d never support that guy in my entire life. He stabs you right in the heart. Forget that,” Ford said.
Trump’s tariffs were enacted under the International Economic Emergency Powers Act (IEEPA)—an unprecedented move by a U.S. president, which may face legal challenges.
Meanwhile, Mexico’s President Claudia Sheinbaum managed to secure a one-month pause on the tariffs against Mexico after agreeing to deploy 10,000 soldiers to the U.S. border to curb drug trafficking and illegal migration.
What’s Next?
Ford has promised to explore domestic alternatives to provide high-speed internet to rural Ontarians but warned that Canadian infrastructure limitations could delay implementation for up to two years.
As the trade war intensifies, Canada and the U.S. face escalating economic tensions that could impact businesses, consumers, and the broader North American economy.
