Ontario Premier Doug Ford cancels $100 million Starlink contract and bans U.S. companies amid trade war
Ontario Premier Doug Ford has announced that the province is canceling its $100-million contract with Elon Musk’s Starlink and will ban U.S.-based companies from participating in provincial procurement. This decision comes as part of Ontario’s retaliatory measures in the ongoing North American trade war.
Ford made the announcement at a press conference this morning, stating that Ontario would no longer award contracts to companies that “enable and encourage economic attacks” on the province and Canada as a whole.
Starlink Contract Canceled Amid Tensions
Ontario initially signed the Starlink contract in November 2024, aiming to provide high-speed internet to 15,000 rural and remote households in the province by June 2025. However, Ford’s government has decided to scrap the agreement in response to the escalating trade conflict between Canada and the United States under President Donald Trump.
“It’s done. It’s gone,” Ford said, confirming the contract’s cancellation. “We won’t award contracts to people who enable and encourage economic attacks on our province and our country.”
When asked about the financial cost of terminating the contract, Ford did not provide a specific figure but assured reporters that he would seek more information on the matter. However, he emphasized that the decision was based on “principle”, rather than cost, stating that Musk—now a key ally of President Trump—should be “embarrassed” for his actions against Canada.
Musk’s Influence in the Trump Administration
Musk, the CEO of Tesla, X (formerly Twitter), and SpaceX, has become an integral part of Trump’s White House, leading the “Department of Government Efficiency”. In this role, he has been responsible for dismantling American agencies and holding high-profile meetings with foreign leaders, such as Indian Prime Minister Narendra Modi.
Ford pointed out that Musk has deep connections to Canada, having attended Queen’s University in Kingston, Ontario, in 1990. He found it ironic that Musk was now backing policies that threaten the country where he once studied.
“He should be embarrassed to attack the people that took care of him for a number of years,” Ford remarked.
Ontario Bans U.S. Companies from Procurement
Beyond canceling the Starlink deal, Ford announced that Ontario will no longer sign contracts with U.S. companies, citing economic retaliation against Trump’s trade policies.
The Ontario government spends $30 billion annually on procurement, and Ford suggested that several American companies doing business in the province could be affected. He directed the provincial public service and his ministers to review all existing contracts with U.S.-based firms to determine if more deals should be scrapped.
“No matter if it’s services through the tech sector or any other products, we need to stop immediately,” Ford said. “And if they come to sue us, so be it. We’re standing up for Ontario. We’re standing up for Canada. And we’re willing to fight in court.”
Boosting Canadian-Made Goods and Energy Sanctions
Ford’s government is also embracing a “buy Canadian” approach, supporting initiatives such as the Buy Beaver app, which helps consumers purchase locally made products. He indicated that his administration might introduce legislation requiring retailers to clearly label Canadian and American-made goods, ensuring that consumers are aware of where products originate.
In addition, Ford threatened to impose a 25% surcharge on electricity exports to New York, Michigan, and Minnesota. He stated that Ontario would not hesitate to cut off electricity supplies entirely if Trump continued escalating tariffs against Canada.
“I will be writing to the officials in New York, Michigan, and Minnesota to warn them that we will immediately apply a 25% surcharge on the electricity we export to them,” Ford said.
Nickel Exports and Economic Leverage
Ford also addressed Ontario’s control over high-grade nickel, a critical mineral used in manufacturing. He claimed that 50% of the nickel used in the U.S. comes from Ontario and suggested that the province might restrict exports to pressure Trump’s administration.
“If we have to stockpile it, if we have to ship it elsewhere, that’s what we’ll do,” Ford said, hinting that Ontario would prioritize selling nickel to international partners over sending it to the U.S.
Escalating Trade Tensions
Ford’s aggressive stance is a response to ongoing economic tensions between Canada and the U.S.. Trump’s administration has introduced new tariffs and trade restrictions that negatively impact Ontario’s economy, particularly in the manufacturing and tech sectors.
The cancellation of the Starlink contract and the ban on U.S. companies in provincial procurement signal a major shift in Ontario’s trade policy, with potential long-term consequences for businesses operating in the province.
As the North American trade war intensifies, it remains to be seen how these retaliatory measures will affect Canada-U.S. relations and whether further economic clashes will arise between Ontario and Washington.
