Ontario's Premier Doug Ford has announced the termination of a $100 million contract with Elon Musk's Starlink, citing U.S. tariffs implemented by President Donald Trump as the motivation behind this drastic decision. This contract, aimed at providing high-speed internet to over 15,000 remote households and businesses across Ontario, was intended to bridge the digital divide plaguing the province's more isolated communities. Ford stated emphatically, "We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hell-bent on destroying our economy." This cancellation marks one of the first notable retaliatory measures taken by the provincial government against the newly imposed tariffs, which include a 25% tax on most Canadian exports to the United States.
During his announcement, Ford underscored the economic ramifications of these tariffs on Ontario's businesses. "Every year, the Ontario government spends $30 billion on procurement... U.S.-based businesses will now lose out on tens of billions of dollars," he declared, emphasizing Ontario's intent to prioritize local suppliers over U.S. companies. The contract with Starlink, signed amid last year's political tensions, was viewed by some as Ford's attempt to facilitate connectivity for remote areas but is now seen as another casualty of the trade conflict.
Insightfully, Ford added, "Canada didn't start this fight with the U.S., but you can bet we're ready to win it." His remarks come amid heightened rhetoric between the two nations, with Trump ruthlessly criticizing Canada's trade surplus as detrimental to American interests. The tariff sanctions ordered by Trump became effective on February 6, 2025, and Ford's cancellation served as both retaliation and confirmation of committed stance against the tariffs.
Responding to questions about potential financial penalties for breaking the contract, Ford was confident. "I think we have a great case, but I don’t care if there’s a fine or whatever, but I think we’re going to win it," he insisted. Ford referenced the recently revised Canada-United States-Mexico Agreement (CUSMA), arguing the tariffs breach established trade norms. The Premier's determination highlights his larger strategy to safeguard Ontario’s economy—a stance echoed by his fellow political leaders.
Opposition leader Marit Stiles of the NDP mirrored the sentiment of urgency, stating, "Access to broadband in Northern communities is a lifeline for people... it's time to find a Canadian-made solution...Northern communities deserve...better than Ford's bad deals." Stiles previously expressed concerns over the partnership with Musk, labeling it inappropriate considering the tariffs and their consequences for Canadian families. The NDP's position emphasizes the pressing need for internet connectivity solutions within Ontario, which cannot rely on foreign contracts amid economic strains.
Bonnie Crombie, the Liberal leader, has likewise criticized Ford for his prior alliances with Musk, challenging him to demonstrate stronger leadership when faced with economic threats posed by foreign entities. "Why did Doug cosy up to Elon in the first place?" Crombie questioned, underscoring the perceived hypocrisy of the Premier's decision to sever ties after the tariffs announcement.
While Ford's administration faces scrutiny, Musk weighed in briefly on his social media platform, posting "Oh well" following the contract's cancellation. This suggests Musk's nonchalance amid the geopolitical clashes impacting intercontinental business dealings. Ford's vocal opposition to U.S. tariffs and emphasis on promoting Canadian businesses shows significant conviction, as he underlines preferential purchasing of local products—from hospitals to everyday items.
The idea of removing American liquor brands from Ontario shelves was also discussed, reinforcing Ford’s commitment to minimize transactions with U.S. businesses as part of his retaliatory measures. "This is tax on American citizens, and that's what Donald Trump is doing to his own people," Ford stated during his media addresses, framing these actions as necessary for the protection of Ontarians from perceived economic aggression.
Ford's determination to uphold economic principles even as tensions simmer between Canada and the U.S. positions his government to seek alternative solutions to existing contracts previously viewed as beneficial. His administration is now tasked with ensuring continued access to high-speed internet without relying on foreign agreements, thereby prompting discussions about potential Canadian partners capable of stepping in to provide these services. Ford's leadership throughout this episode highlights the fragility of cross-border business relations amid nationalistic policies and trade disputes, igniting questions about future collaborations.
This series of events epitomizes the challenges faced by provincial leaders when external political dynamics infringe upon local worries about connectivity and service provision. The future of Ontario's internet service provision hangs uncertain, with pressure mounting on Ford to deliver viable solutions swiftly following the abrupt termination of the Starlink contract.