- Ontario briefly canceled a $68 million Starlink contract in response to U.S. tariffs before reinstating it later the same day.
- Trump’s administration delayed the tariffs for 30 days after Canada agreed to increase border security personnel.
- Ford warned U.S. companies could lose billions in Ontario contracts if tariffs were imposed, but the Starlink deal ultimately remained intact.
Ontario’s government briefly scrapped a $68 million contract with Starlink on Monday before reversing course later the same day. The move came in response to U.S. President Donald Trump’s announcement of a 25% tariff on nearly all Canadian imports, prompting Canada to retaliate with its own 25% tariffs on American goods. Ontario Premier Doug Ford initially declared the province would cancel Starlink’s contract as part of a broader measure blocking U.S. companies from future provincial contracts.
The Starlink deal, signed in November 2024, was intended to expand high-speed satellite internet access to Ontario’s remote areas. However, Ford’s government announced it would sever ties with the Elon Musk-owned company in protest against the U.S. tariffs. The decision followed heated rhetoric from Ford, who criticized Musk’s close ties to the Trump administration and accused him of prioritizing political interests over economic stability.
Later on Monday, the situation shifted when Trump’s administration announced a 30-day delay on the new tariffs. The pause followed negotiations between Canadian Prime Minister Justin Trudeau and U.S. officials, with Canada agreeing to deploy additional border security personnel. In light of this development, Ford’s government walked back its decision, reinstating the Starlink contract while maintaining a firm stance against U.S. trade policies.
Ontario’s brief ban on U.S. companies from bidding on provincial contracts underscored the tensions between Canada and its southern neighbor. Ford had warned that American businesses stood to lose billions in potential revenue if the tariffs were enacted. The province’s swift policy reversal reflected the fluid nature of trade negotiations and the economic pressures at play.
While the Starlink deal remains intact, the dispute highlights the broader challenges in U.S.-Canada relations under Trump’s presidency. With the tariff delay only temporary, further economic and political maneuvers between the two nations are likely in the coming weeks.
