TORONTO — The Premier of Ontario, Canada’s largest province, announced on Monday his decision to cancel a contract with Elon Musk’s Starlink internet service as a strong response to tariffs imposed by U.S. President Donald Trump. This contract, valued at around CAD 100 million (approximately USD 68 million), was initially signed in November to expand high-speed internet access to isolated communities in rural and northern parts of Ontario.
A high-ranking official within the Canadian government expressed doubt about the country’s ability to sidestep the impending tariffs, similar to how Mexico managed to do so recently. The official, who wished to remain unnamed, noted that the shifting nature of negotiations often puts Canada at a disadvantage compared to its southern neighbor.
During discussions on Monday, Trump and Mexican President Claudia Sheinbaum announced a temporary pause on planned tariffs to allow for further dialogue, a decision later endorsed by the White House. Trump also indicated on social media that he had conversations with Canadian Prime Minister Justin Trudeau in the morning and intended to follow up again in the afternoon. While both Canada and Mexico had been preparing to impose retaliatory tariffs, Mexico has chosen to delay its actions for now.
Premier Doug Ford criticized American entities, stating his government would not engage in contracts with businesses that threaten Ontario’s economy. He emphasized the importance of using local and Canadian products in all projects, regardless of their scale. “We’ll be ripping up the province’s contract with Starlink,” he asserted. Ford also predicted that American companies would experience significant revenue losses due to his administration’s policies, which he claims will prioritize Canadian resources and labor.
In line with this movement, Ontario has already initiated plans to remove American alcohol brands from its provincial retail outlets. Ford highlighted that the Liquor Control Board of Ontario distributes nearly CAD 1 billion (USD 687 million) in American alcoholic beverages annually.
He declared, “Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” as he heads into an election, aiming for a four-year mandate that would surpass Trump’s tenure. Ford challenged the narrative that Canada poses a problem, stating he’s never heard an American citizen attribute issues to Canada.
In retaliation to the tariffs imposed by the U.S., Canada and Mexico have both announced their own levies on American products. Ford has also urged local businesses to prominently display the Canadian flag on their products to promote local purchasing.
He referred to Trump’s actions as a “tax on American citizens” that ultimately harms families and businesses, reflecting his frustration with Musk’s alignment with Trump’s policies. Ford accused Musk of being part of a group that jeopardizes the livelihoods of working people, adamantly stating, “I’m not going to tolerate it.”
In response to these events, Trump criticized Canada for its trade surplus with the U.S., controversially suggesting that Canada could benefit from becoming the “Cherished 51st State” of the U.S., stating this would result in lower taxes and better military protection without tariffs for Canadian citizens.
