On February 3, 2025, Ontario Premier Doug Ford made headlines by announcing the cancellation of a nearly $100 million contract with Elon Musk’s Starlink internet service.
This bold move comes in direct response to the sweeping tariffs imposed by U.S. President Donald Trump on Canadian goods, which have sparked a trade war between the two nations.
Background of the Contract
The contract, signed in November 2024, was intended to provide high-speed internet access to approximately 15,000 homes and businesses in rural and northern Ontario by June 2025.
Starlink, a subsidiary of Musk’s SpaceX, has been pivotal in expanding internet access in underserved areas across Canada. However, Ford’s recent comments indicate a shift in priorities as he seeks to protect Ontario’s economy from perceived threats posed by U.S. policies.
Ford’s Statement
During a press conference in Etobicoke, Ford expressed his determination to sever ties with companies that he believes are undermining Ontario’s economic stability.
“We will be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” he stated emphatically.
This statement underscores his administration’s stance against U.S. tariffs that he claims could jeopardize the livelihoods of hardworking Ontarians.
Ban on American Companies
In addition to canceling the Starlink contract, Ford announced that Ontario would prohibit American firms from securing provincial contracts until the tariffs are lifted.
“U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame,” he asserted. This strategy is part of a broader retaliation against the tariffs that have been described as damaging to Canada’s economy.
The Impact of U.S. Tariffs
The tariffs imposed by Trump include a 25% levy on nearly all Canadian goods and a 10% tariff on Canadian energy products, effective immediately.
These measures have prompted Canada to consider retaliatory tariffs on American imports, further escalating tensions between the two countries.
As part of this response, Ford has also directed the Liquor Control Board of Ontario to remove American products from its shelves, reflecting a growing sentiment among Canadian leaders to stand firm against U.S. trade aggression.
Political Ramifications
Ford’s decision comes at a politically charged time as he campaigns for re-election amidst rising tensions with the U.S.
His actions are being closely scrutinized by political opponents and supporters alike. Critics, including Ontario Liberal Leader Bonnie Crombie, have previously called for an end to the Starlink deal, suggesting that if Ford were genuinely committed to opposing Trump’s policies, he would have acted sooner.
Conclusion
As Ontario navigates these turbulent waters of international trade relations, Doug Ford’s cancellation of the Starlink contract serves as a significant statement of defiance against U.S. tariffs.
This move not only reflects his administration’s commitment to protecting local interests but also sets the stage for potential shifts in future procurement policies within the province.
With tensions continuing to rise between Canada and the United States, all eyes will be on how these developments unfold and what they mean for both economies moving forward.
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