Ontario cancels $100M contract with Musk's Starlink over Trump's tariffs
What's the story
Ontario Premier Doug Ford has announced the scrapping of a $100 million contract with Elon Musk's Starlink.
The decision comes after President Donald Trump slapped Canada with extensive tariffs of 25% on goods coming from the neighboring nation.
The scrapped deal, signed in November, was supposed to bring internet access to the rural parts of Ontario through Starlink's services.
Contract suspension
Ontario halts all government contracts with US firms
The termination of the Starlink contract comes as part of a wider move by Ontario to suspend all government contracts with US companies.
The move is considered a counter to the newly imposed tariffs.
Earlier today, Trump announced a 30-day suspension of the proposed tariffs on Canada and Mexico after both nations pledged to enhance border security and combat drug trafficking—key concerns raised by the US.
It remains to be seen how Ontario will proceed with its Starlink deal.
Economic retaliation
Ford's stance on Ontario's economic independence
Ford said American businesses stand to lose potential revenues of tens of billions of dollars due to this decision.
He reiterated his commitment to Ontario's economic independence, saying regardless of the project, he wants to ensure usage of local resources.
"I don't care if it's a toothpick. We need to purchase from Canada and Ontario," he said.
This statement highlights his stance on prioritizing Canadian products over imports in the wake of the US tariffs.
Liquor ban
Ontario plans to remove US liquor brands from stores
Along with contract suspensions, Ontario is also planning to take American liquor brands off government store shelves.
The Liquor Control Board of Ontario sells nearly $1 billion worth of American wine, beer, spirits and seltzers every year.
This move further highlights the province's economic retaliation against the US tariffs.