Home Business Ontario’s premier announces termination of $100 million agreement with Musk’s Starlink due to US tariffs

Ontario’s premier announces termination of $100 million agreement with Musk’s Starlink due to US tariffs

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Ontario’s premier announces termination of $100 million agreement with Musk’s Starlink due to US tariffs

TORONTO — The Premier of Ontario, Doug Ford, announced on Monday that the province will terminate its contract with Starlink, the satellite internet service owned by Elon Musk, as a direct action against the tariffs imposed by U.S. President Donald Trump. This $100-million Canadian agreement, which aimed to provide high-speed internet access to residents in remote and rural areas of the province, is being revoked as part of Ford’s broader strategy to encourage local business engagement and economic resilience.

During his announcement, Ford expressed his determination: “We’ll be tearing up the province’s agreement with Starlink. Ontario is not going to partner with entities that threaten our economic stability.” He placed the blame squarely on President Trump, indicating that Musk could possibly reach out to the President regarding the fallout. “This is one of the consequences,” he stated.

Ford further indicated that by implementing this policy, U.S. companies could lose significant revenue opportunities, potentially amounting to “tens of billions of dollars” in the process. His administration will prioritize Canadian businesses in all projects, saying, “We simply will not engage with American firms. Whether it’s a hospital, any construction project, or even a small item like a dog house, I want to ensure that we are sourcing Ontario and Canadian products exclusively.”

In addition to canceling the Starlink contract, Ford mentioned that Ontario and other provinces are also taking steps to remove American alcohol brands from provincial store shelves. The Liquor Control Board of Ontario currently sells nearly $1 billion worth of American alcoholic beverages each year, an issue that Ford highlighted as more significant in the context of ongoing trade tensions.

Stressing a desire to protect Canadian interests, Ford remarked, “Canada did not instigate this conflict with the U.S., but make no mistake, we are prepared to come out on top.” He referred to the provincial elections he called last week, seeking a four-year term that would extend beyond Trump’s presidency. “Is Canada the problem?” he questioned. “I have not heard one American citizen make that claim.”

In response to the tariffs from Trump’s administration, Canada and Mexico have enacted retaliatory tariffs on American products. Ford also urged businesses to prominently feature the Canadian flag on their products to help consumers identify local goods more easily. He characterized Trump’s actions as financially harmful to American citizens, stating, “This is a tax affecting American families. Donald Trump is targeting his own constituents.” He criticized Musk, associating him with a group intent on undermining working-class families’ livelihoods.

In a recent statement, Trump reacted by questioning Canada’s trade surplus with the United States, asserting, “Without that surplus, Canada ceases to exist as a viable country. It’s a harsh reality but true! Hence, Canada should consider becoming our 51st state; it would lead to lower taxes and improved military protection, along with zero tariffs for its people.”