Ontario Premier Doug Ford announced today that the province is terminating its $100 million contract with Elon Musk’s Starlink, citing the incoming 25 percent U.S. tariffs imposed by President Donald Trump. In a further move to protect provincial interests, the government has also declared a ban on American companies from securing future provincial contracts.
The announcement comes just days before Trump’s new tariffs on Canadian goods take effect, escalating tensions in an already fraught trade relationship. Premier Ford emphasized that the province’s decision is a direct response to what he described as “unfair and damaging” trade policies targeting Canadian businesses.
“Ontario will not stand by while our industries, workers, and taxpayers are hit with these reckless tariffs,” Ford stated. “We’re putting Ontario businesses first and ensuring that taxpayer dollars are invested in Canadian companies—not in American firms that benefit from policies designed to hurt us.”
The $100 million Starlink contract, originally aimed at improving high-speed internet access in rural and underserved communities, will now be redirected to Canadian-based telecommunications providers. The government has assured that ongoing efforts to expand broadband access across the province will continue without disruption.
Ontario’s decision to bar U.S. firms from provincial contracts signals a significant shift in procurement policy, potentially affecting a wide range of industries. Further details on how this policy will be implemented, including whether exceptions will be made for critical infrastructure projects, are expected in the coming days.
The move comes as Prime Minister Justin Trudeau prepares to speak with President Trump today in an effort to ease tensions. Meanwhile, Ontario officials, including Premier Ford, are taking an aggressive stance on U.S. trade policies, with Ford set to appear on multiple American news programs to press Canada’s case.
As the trade standoff escalates, Ontario is positioning itself to protect local businesses and jobs, while urging the federal government to take further action to counteract the economic impact of the new U.S. tariffs.
This is a developing story. Stay tuned for more information.