Ontario, Canada, has taken decisive action against U.S. tariffs by terminating its contract with Elon Musk's Starlink satellite internet service. Premier Doug Ford announced on Monday his government would be 'ripping up' the nearly $100 million contract, which aimed to bring high-speed internet access to 15,000 homes and businesses throughout the province. This decision stems from President Donald Trump's announcement of a 25% tariff on most imports from Canada, which Ford decried as harmful to the Canadian economy.
'Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts,' Ford proclaimed via X, the social media platform formerly known as Twitter. The province spends about $30 billion annually on procurement, meaning companies across the U.S. could miss out on tens of billions of dollars as Ford retaliates against what he sees as aggressive economic policies from the Trump administration.
'They only have President Trump to blame,' Ford added, demonstrating his discontent with the economic situation. The premier's explicit condemnation extends beyond Starlink, reaching all American firms vying for government contracts within Ontario.
The $68 million contract with Starlink, signed last November, was set to provide high-speed internet access to underserved regions of Ontario by June 2025, helping to bridge the digital divide affecting many rural and remote communities. Now, rather than facilitating this development, the contract has become collateral damage as Ontario responds to U.S. tariffs which Ford argues worsen the overall economic climate.
'Ontario won't do business with people hellbent on destroying our economy,' Ford stated during his announcement. He elaborated on the potential repercussions of the tariffs not only for Canada but also for the United States, predicting they would result in inflation and job losses across multiple sectors. 'These tariffs will put up to 450,000 jobs at risk from every sector and every region. No one will be immune, everyone will feel the impact,' he emphasized.
While Ford is aligning with other Canadian leaders advocating for protective measures against U.S. tariffs, his actions are also generating criticism among certain political circles. For example, Maine Policy Institute CEO Matthew Gagnon remarked, 'Canada, and particularly Ontario, are reacting to the Trump tariffs in the most incomprehensible way imaginable.' He suggested the termination of the Starlink contract would only worsen conditions for Ontario.
Ford's approach follows Trump's trade rhetoric, which portrays Canada as difficult to negotiate with and blames it for perceived economic disadvantages faced by American companies. At the same time, President Trump has made it clear he sees tariffs as necessary for maintaining border security and regulating illegal immigration, linking these issues directly to trade with Canada.
Canadian Prime Minister Justin Trudeau, responding to the tariffs, explained the depth of Canada’s economic ties to the U.S. during the shared history of military collaborations between the two nations. He remarked eloquently, 'From the beaches of Normandy to the streets of Kandahar, we have fought and died alongside you,' reinforcing the notion of friendship between countries facing unnecessary trade tensions.
The increased tariffs have prompted not only strong words but also retaliatory measures from Canada. Trudeau announced plans for counter-tariffs on U.S. goods totaling approximately C$30 billion immediately, with another C$125 billion slated for the near future. The aim is to balance the scales following what many Canadian officials characterize as unjust economic aggression.
Ford's actions signal increasing tension not just between Canada and the U.S., but also send ripples through existing relationships within the province's economy. His remarks indicate a desire for self-sufficiency and support for Ontario businesses, emphasizing, 'I don’t care if it’s a toothpick. We need to purchase from Canada and Ontario.'
Interestingly, other provinces such as Quebec, British Columbia, and New Brunswick have followed suit, announcing plans to reconsider contracts and remove American alcohol products from store shelves, all aimed at exerting leverage against U.S. policies.
While Canadian officials prepare for discussions and potential negotiations to address these tariff issues, Ford's commitment to protecting Ontario's interests is clear. He maintains his government will not back down easily. 'Canada didn't start this fight with the U.S., but you can be sure we’re ready to win it,' he resolved.
The fraught nature of Canada-U.S. trade relations is expected to continue dominating headlines, as implementation of these tariffs looms. Meanwhile, communities across Ontario are left wondering how this conflict will reshape their digital future and overall economic opportunities.