Key Points
- Ontario pauses canceling its $100 million Starlink contract after the U.S.-Canada tariff truce.
- Ford warns that Ontario will remove American products from LCBO if tariffs resume and block U.S. firms from contracts.
- The initial decision to revoke Starlink’s contract was part of Canada’s response to Trump’s 25% tariff on Canadian imports.
- The situation remains fluid, with a 30-day window for U.S.-Canada negotiations before further action is taken.
Ontario Premier Doug Ford has temporarily paused the province’s cancellation of its $100 million Starlink contract after Prime Minister Justin Trudeau and former U.S. President Donald Trump agreed to suspend their ongoing tariff standoff for 30 days. Ford stated that since the U.S. has halted tariffs, Ontario would pause its retaliatory measures.
However, he warned that if Trump proceeds with tariffs, Ontario will not hesitate to remove American products from LCBO shelves or restrict American companies from participating in provincial procurement. He emphasized that Canada and the U.S. should remain united and focus on their true economic competition with China.
The Starlink contract was initially scrapped in response to Trump’s announcement of a 25% tariff on nearly all Canadian imported goods, prompting Canada to impose identical tariffs on American imports. Ford’s government then decided to revoke its $100 million deal with Elon Musk’s Starlink, signed in November of the previous year, to provide internet access to remote parts of the province.
Additionally, Ontario banned American companies from government contracts and ordered the Liquor Control Board of Ontario to stop selling American-made spirits. This move directly impacts an industry generating nearly $1 billion annually.
Ford justified his actions by linking Musk to Trump’s economic policies. Musk, a close Trump ally, recently assumed control over the Department of Government Efficiency (DOGE), a cost-cutting and deregulation body within the U.S. administration.
Despite not holding an elected position, Ford claimed that Musk now wields influence over federal financial systems and aspects of the U.S. Treasury. He argued that Ontario should not engage in business with individuals who seek to harm Canada’s economy, asserting that Musk’s policies would negatively impact Canadian workers.
With a temporary truce, the U.S. and Canada now have a month to negotiate a long-term resolution. While Ontario’s Starlink contract remains intact, Ford clarified that the province could reinstate its ban if the U.S. proceeds with tariffs. Musk responded briefly to X as tensions persisted, posting simply, “oh well.”
