In a bold move, Ontario Premier Doug Ford announced the cancellation of a CAD 100 million ($68.5 million) contract with SpaceX’s Starlink, owned by Elon Musk, in direct response to recent trade tariffs imposed by U.S. President Donald Trump. Ford also declared a ban on U.S.-based companies from securing provincial contracts, marking a clear stance against the tariffs and the economic impact on Canada.
“We’ll be ripping up the province’s contract with Starlink,” Ford wrote on X (formerly Twitter) on February 3, adding, “Ontario won’t do business with people hellbent on destroying our economy.” He placed the blame for the situation squarely on Trump’s shoulders, stating that U.S. businesses would now miss out on “tens of billions of dollars” in potential revenue due to the tariff dispute.
The conflict stems from President Trump’s decision to impose a 25% tariff on products from Mexico and Canada, and 10% tariffs on Chinese goods, effective from February 1, 2025. This move, seen by many as part of Trump’s broader protectionist strategy, has led Canadian provinces to push back—some even removing U.S. products from store shelves in protest.
Ford emphasized that Canada did not initiate the trade war but was fully prepared to respond. “Canada didn’t start this fight with the US, but you better believe we’re ready to win it,” Ford stated. While Ontario’s decision has drawn attention, it comes in the wake of Trump’s efforts to reduce government spending by appointing Musk to head the Department of Government Efficiency (DOGE), an agency focused on reducing federal bureaucracy.
In a more conciliatory development, NBC News reported that the U.S. and Mexico reached a temporary delay of the tariffs after negotiations between Trump and Mexican President Claudia Sheinbaum. A similar agreement was struck with Canadian Prime Minister Justin Trudeau, allowing both nations additional time to negotiate and resolve the issue.
Ontario’s move highlights the growing tensions between the U.S. and Canada over trade, with the potential for more significant economic repercussions if the dispute continues to escalate.
