Ontario's leaders announced on February 3, 2025, they will pause all retaliatory measures against the United States following news of delayed tariffs by U.S. President Donald Trump. This pause includes plans to scrap contracts with American companies and the removal of U.S. alcohol products from store shelves. Premier Doug Ford stated, "With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures."
The decision came as Canadian Prime Minister Justin Trudeau and Trump agreed to postpone tariffs, which were initially set to impose 10% on energy and 25% on all other goods entering Canada. Ford emphasized the importance of these negotiations, asserting, "We have some good news today. We have temporarily averted tariffs... giving time for more negotiation and time for cooler heads to prevail."
Prior to the agreement, Ford had threatened to cancel a $100 million deal with Elon Musk's SpaceX to provide Starlink broadband service to rural communities, impacting 15,000 premises across Ontario. He previously stated, "I'm not going to support someone who is hellbent on destroying our province, destroying people's families," referring to actions taken by Trump to impose tariffs on Canada.
Alongside the transportation of U.S. liquor items, Ford had insisted on banning American companies from provincial contracts, which could cost those businesses billions of dollars. He acknowledged, "This is a tax on American citizens... he wants to take food off the table of hard-working people." His remarks were aimed at criticizing Trump's aggressive trade policies, which he argued hurt both Canadian and American workers.
The announcement leads to uncertainty for several industries, particularly the wine market and the liquor control board, which previously accounted for nearly CA$1 billion annually from American products. With U.S. wines being favored by Ontarian consumers—four of the top five wines sold being from California—the temporary relief is welcomed by many. “This is the right move,” said some local shoppers, relieved they can continue to purchase their favorite brands, at least for now.
Opposition leaders, such as Ontario Liberal Leader Bonnie Crombie and NDP Leader Marit Stiles, have been vocal about their concerns over Ford's initial willingness to prioritize U.S. contracts, calling out the government for signing deals like the Starlink one. Crombie said the contract “never should have been signed,” whereas Stiles called the situation “peculiar” and noted, “That deal always smelled funny to me.” This criticism points to the growing discourse surrounding government spending and the effectiveness of contracts involving U.S. companies, especially during times of trade uncertainty.
Ford's government faces scrutiny as he pushes for electoral support during upcoming elections, claiming current circumstances necessitate the need for public endorsements. Some believe the pause on tariffs might relieve pressure off his administration:, “We need to keep all businesses afloat and protect jobs,” Ford insisted, clearly linking his administration's efforts to public welfare and job sustainability during tumultuous trade negotiations.
Even as negotiations pause, the conversation around tariffs will remain central as industries brace themselves for any forthcoming changes. While the immediate threat of tariffs has been delayed, both Canadian and American businesses recognize the potential volatility upcoming negotiations could entail.
Ford’s announcement was also notable for its political positioning during this period of campaigning. He stated, “Canada didn’t start this fight... but you bet we’re ready to win it,” signaling proactive leadership amid growing tensions with the U.S. Nevertheless, critics argue Ford's management has made Ontario vulnerable to such trade wars.
Time will tell how this pause will evolve and whether it presents long-term solutions for the concerns of Canadian businesses. For now, Ford’s government takes momentary solace as it navigates the complex waters of international trade relations.