Canada’s second most populated province, Ontario, on Monday, announced its decision to cancel its $100m contract with Elon Musk’s Starlink.
The Provincial Premier, Doug Ford, in a statement on Monday, stated that the decision followed an order signed by U.S. President Donald Trump to impose import tariffs on Canada, Mexico and China.
According to Doug, the province will not do business with a country “hellbent on destroying our economy.”
“Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
“Every year, the Ontario government and its agencies spend $30bn on procurement, alongside our $200bn plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.
“We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy.
“Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” Doug stated.
Specifically, Trump signed executive orders on January 31 to hit Canada with import duties of 10% on energy and 25% on other goods.
Canadian government officials in Ontario had on November 14, 2024 signed a partnership contract with Elon Musk’s Starlink satellite service, which is aimed at connecting Internet to 15000 rural locations in the province.
According to officials, registration is expected to start from mid-March, while project itself expected to start in June 2025
“Our government is pleased to work with Starlink to offer a highly advanced satellite internet service that will help people living and working in the hardest to reach areas of the province access high-speed internet,” Ontario’s Minister of Infrastructure Kinga Surma said in a press release.
“We are using all viable options and technologies to ensure every community across the province has access by the end of 2025.”
Meanwhile, the Canadian government has responded to Trump’s tariffs, by imposing tariffs of its own on $30bn in goods imported from the U.S., effective from February 4.
Announcing the tariff on Sunday, Canadian Prime Minister, Justin Trudeau said the country will also impose tariffs on an additional list of imported U.S. goods worth $125bn.
