Ontario Cancels $100M Starlink Deal Amid U.S. Tariffs

Ontario Cancels $100M Starlink Deal Amid U.S. Tariffs

Ontario Premier Doug Ford has scrapped a $100-million contract with Elon Musk’s Starlink in response to new 25% U.S. tariffs imposed by President Donald Trump. Ford announced the move as part of broader retaliatory measures, including banning American companies from provincial contracts.

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The Starlink deal, signed in November, aimed to bring internet access to 15,000 rural Ontario residents. However, Ford cited Trump’s tariffs as the reason for its cancellation, stating, “We won’t do business with those hurting our economy.” Musk, who heads Trump’s Department of Government Efficiency (DOGE), reacted to the news with a brief “Oh well” on X.

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National & International Trade Implications

  • Trump’s executive order imposes a 25% tariff on all Canadian goods and a 10% tariff on Canadian oil, natural gas, and electricity.
  • Canada retaliated with a 25% levy on $155 billion worth of U.S. goods, including alcohol and fruit.
  • Trump justified the tariffs by citing illegal migration and drug trafficking, despite Canada’s $1.3 billion border security plan.
  • Mexico was also hit with tariffs, but they were paused for one month after discussions with President Claudia Sheinbaum.

Ford confirmed Ontario had not paid Starlink and expressed confidence in the decision’s legality under USMCA rules. Meanwhile, Canada has announced its own counter-tariffs and trade tensions continue to escalate.

With a snap election set for Feb. 27, Ford has promised to invest in domestic internet solutions, though implementation could take up to two years. The trade war’s impact on inflation, jobs, and cross-border relations remains uncertain.

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