Ontario Reinstates $68 Million Starlink Contract Amid US Tariff Controversy
On Monday, Doug Ford, the Premier of Ontario, made headlines by announcing the termination of a $68 million (approximately $100 million CAD) contract with Elon Musk’s Starlink satellite internet service. This decision followed a significant escalation in trade tensions, including President Donald Trump’s announcement of a 25% tariff on nearly all Canadian imports. In retaliation, Canada prepared to impose a similar tariff on U.S. goods.
Doug Ford’s Contract Cancellation
The announcement from Ford came shortly after President Trump opted to postpone the tariffs on Canadian imports by 30 days. This decision was influenced by Canadian Prime Minister Justin Trudeau, who offered several concessions, such as deploying 10,000 “frontline personnel” along the extensive 5,500-mile Canada-U.S. border.
Impact of Trade Relations
Musk, a close associate of Trump, leads the Department of Government Efficiency (DOGE), a group focused on budget cuts and deregulation within the Trump administration. Starlink, Musk’s satellite internet venture, has been actively seeking contracts with both local and national governments to extend internet access. The Ontario government’s contract with Starlink, inked in November 2024, aimed to enhance connectivity in remote areas of the province.
- Contract Value: $68 million ($100 million CAD)
- Purpose: Provide fast internet to remote regions
- Contract Signed: November 2024
Ford’s Statements and Future Actions
In a press conference earlier on Monday, Ford declared that other U.S. companies would be barred from future provincial contracts in Ontario until the U.S. government lifted the tariffs. He expressed strong sentiments about Musk’s influence, stating, “Musk is part of the Trump team that wants to destroy families and businesses.”
Ford emphasized the economic impact of these decisions, asserting, “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”
Starlink’s Response
As of now, Starlink has not issued a response to the cancellation of the contract or Ford’s comments. For more information on trade relations between Canada and the U.S., you can visit Canada’s official trade relations page.
Correction: This article was updated to clarify that the contract with Starlink was worth $100 million CAD and to reflect the recent developments regarding the tariffs.
