Ontario Premier Doug Ford announced on Monday that the provincial government is terminating its $100 million contract with Elon Musk’s Starlink satellite internet service.
The decision comes amid escalating trade tensions between Canada and the United States, following the imposition of reciprocal tariffs by both nations.
In a post on X (formerly Twitter), Ford stated, “Ontario won’t do business with people hellbent on destroying our economy.”
“Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
“Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.
“We’re going one step further. We’ll be ripping up the province’s contract with Starlink,” Ford stated.
The Starlink contract
The Starlink contract, signed in November 2024, was intended to provide high-speed internet to remote areas of Ontario.
- However, Ford’s administration has now severed ties with the U.S.-based company, citing Musk’s close association with President Trump and his role in the Trump administration’s cost-cutting initiatives.
- Musk, who oversees the Department of Government Efficiency (DOGE) within the Trump administration, has been a key figure in efforts to reduce government spending and deregulate industries.
- His involvement in the administration has drawn criticism from Canadian officials, particularly in light of the ongoing trade dispute.
Elon Musk’s role in Trump administration
During a press conference on Monday, Ford accused Musk of being “part of the Trump team that wants to destroy families, incomes, and businesses.”
He added, “Musk wants to take food off the table of hard-working people, and I’m not going to tolerate it.”
Ford also announced that U.S. companies would be barred from future provincial contracts in Ontario until the U.S. government removes its tariffs on Canadian goods.
He warned that U.S.-based businesses would lose out on tens of billions of dollars in potential revenue as a result of the trade tensions, placing the blame squarely on President Trump.
What you should know
Ford’s announcement follows U.S. President Donald Trump’s recent decision to impose a 25% tariff on nearly all Canadian imported goods, prompting Canada to retaliate with a 25% tariff on U.S. goods.
The cancellation of the Starlink contract marks a significant escalation in the trade dispute between the two nations and highlights the growing strain on U.S.-Canada relations.
As the situation unfolds, businesses on both sides of the border are bracing for the economic impact of the ongoing trade war.
