In a significant move reflecting escalating tensions between Canada and the United States over recent trade policies, Ontario Premier Doug Ford announced the termination of a C$100 million contract with Elon Musk’s satellite internet company, Starlink. This decision is a direct response to U.S. President Donald Trump’s imposition of tariffs on Canadian goods, which Ford described as detrimental to Canada’s economy.
Premier Ford has been vocal in his criticism of President Trump’s trade actions, labeling the tariffs as “selfish and harmful.” He emphasized Canada’s readiness to defend its interests, stating, “Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
In addition to canceling the Starlink contract, Ford has proposed a ban on American companies from provincial government contracts until the U.S. lifts the tariffs. He remarked, “Ontario won’t do business with people hell-bent on destroying our economy.”
The dispute began when President Trump imposed a 25% import tax on Canadian goods and a 10% levy on Canadian energy exports, citing concerns over border security and trade imbalances. In retaliation, Canada announced matching tariffs on U.S. goods, amounting to C$107 billion. Prime Minister Justin Trudeau condemned Trump’s actions as “a very dumb thing to do,” reinforcing Canada’s stance against what it perceives as unjust trade measures.
The cancellation of the Starlink contract is particularly notable, given the strategic importance of expanding high-speed internet access in rural and remote areas of Ontario. The partnership with Starlink was intended to bridge the digital divide, but Ford’s government now views the association with Musk’s company as untenable amid the trade dispute. Ford quipped that perhaps Musk should “call his buddy” Trump, highlighting the interconnectedness of business and politics in this context.
This development has broader implications for U.S.-Canada relations, especially considering Musk’s close ties to President Trump. The situation underscores the complexities businesses face when geopolitical tensions influence trade and international partnerships. As the trade war intensifies, both nations brace for economic repercussions, including potential job losses and increased consumer prices. The outcome of this dispute will likely shape future interactions between the two countries and set precedents for corporate-government relations in politically sensitive environments.
