On March 4, 2025, Ontario Premier Doug Ford announced significant retaliatory measures against the United States following the implementation of 25% tariffs on Canadian goods by President Donald Trump. Chief among these measures is the cancellation of Ontario’s $100-million contract with Elon Musk's Starlink, which was intended to provide high-speed internet access to 15,000 homes and businesses across rural and remote northern communities by June 2025.
During a press conference held at Queen's Park, Ford emphasized, "It's done, it's gone." He asserted, "We won’t award contracts to people who enable and encourage economic attacks on our province and our country," illustrating the depth of his discontent with Musk's close affiliation with the Trump administration, which has provoked trade tensions between Canada and the US.
This contract cancellation is not just about one project; it is part of Ontario's sweeping policy change, which includes barring American companies from securing procurement contracts altogether. This yearly procurement budget amounts to $30 billion—a considerable loss for businesses south of the border. Ford remarked, "U.S.-based businesses will now lose out on tens of billions of dollars in revenues. They only have President Trump to blame." This measure also encompasses contracts tied to Ford's ambitious $200 billion infrastructure plan, which aims to improve highways, transit systems, and hospitals within Ontario.
Compounding these developments, Ford announced plans to impose a 25% surcharge on electricity supplied to several states, including New York, Michigan, and Minnesota, where 1.5 million American customers receive Ontario's electricity. Ford warned, If U.S. tariffs persist, "we may have to stop supplying the power entirely,” signaling the serious ramifications of the trade conflict. Ontario currently provides approximately 50% of the U.S. supply of nickel, describing it as "a pivotal component" for North American manufacturing.
“We also need to be ready to dig in for a long fight,” Ford stated, as he affirmed Ontario's commitment to self-sufficiency and resilience against outside economic pressures.
Another significant action taken by the province was the announcement from the Liquor Control Board of Ontario (LCBO), which will cease purchasing and selling American alcohol products. This move effectively erases over 3,600 SKUs from its shelves—amounting to roughly $965 million annually—as it directs its focus on Canadian products. Ford has previously made it clear, “We have to make sure we diversify and make sure the provinces, municipalities, and the federal government buy Ontario and, secondly, buy Canadian.”
Despite the near-term challenges posed by these policy shifts, Ford aims to support industries facing disruption due to tariffs. His government’s election platform recently proposed nearly $20 billion aimed at bolstering struggling sectors and workers, indicating the long-term strategy is one of resilience through domestic investment.
Consequently, Prime Minister Justin Trudeau also announced matching tariffs on $155 billion worth of U.S. goods, which includes $30 billion worth of immediate tariffs and additional measures to aid Canadian companies adjusting to the new trade environment. Trudeau criticized Trump's decision, remarking, “Today the U.S. launched a trade war against Canada, their closest ally and their closest friend.” He has suggested Trump’s actions aim to destabilize Canada's economy, which Ford also appears to believe, emphasizing the urgent need for Canada to respond vigorously.
Ford pointed out the irony of Musk's criticism toward Canada, noting, “Isn’t it ironic... part of his education was at Queen's. And he’s attacking the country, and the province, which provided him with opportunities.” Musk famously attended Queen's University before launching his career, creating another layer of complexity to Ford's criticisms of globalization and economic reliance on America.
With the cancellation of the Starlink contract, future connectivity initiatives may pivot toward Canadian alternatives, such as Xplore, which could step up to fill the void left by Starlink. Hence, this cancellation not only highlights the immediate economic ramifications of the tariffs but signals to Ontario residents their government is willing to take actionable steps to defend local interests under challenging circumstances.
Despite warnings of impending economic fallout, Ford’s administration remains steadfast, reiteratively expressing intent to support local businesses, protect Ontario’s interests, and brace for sustained hardship amid this lengthy trade conflict. He poignantly stated, “The coming days and weeks will be hard. Businesses and families will feel the pain of this needless fight, but together we’re going to stand up for Canada.” The next chapter of this developing story will be determined as Ford’s actions and operational policies resonate within the provincial economy and abroad.