Ontario vows to cancel $100M Starlink deal over U.S. tariffs

Ontario Premier Doug Ford has once again promised to cancel the province’s $100 million contract with Elon Musk’s Starlink, citing the recent imposition of U.S. tariffs on Canadian goods as the primary driver behind the decision.

The contract, signed in November last year to provide internet services to remote areas of Ontario, now faces renewed scrutiny as the long-threatened Trump tariffs have officially gone into effect. These tariffs impose a 25 percent duty on most Canadian goods and a 10 percent duty on energy exports. Ford, a former supporter of President Trump, warned that if the tariffs persist, Ontario might be forced to impose its own 25 percent surcharge on electricity exports to the United States—a measure that could affect over 1.5 million U.S. residents in Michigan, New York, and Minnesota. “We need to be ready to dig in for a long fight,” Ford said, according to the Toronto Sun.

In addition to the potential cancellation of the Starlink deal, Ford has floated other measures, including surcharges on mineral exports and even the possibility of cutting off electricity to U.S. customers if negotiations fail. The situation underscores the escalating tensions in North American trade relations, with Canadian officials also taking steps on other fronts. Ontario’s primary liquor wholesaler, the LCBO, has confirmed plans to stop purchasing U.S.-made alcohol, and Prime Minister Justin Trudeau has announced that Canada will introduce retaliatory tariffs on U.S. goods.

Trudeau criticized the U.S. action during a news conference, stating, “Today the US launched a trade war against Canada, their closest ally and their closest friend. At the same time, they're talking about working positively with Russia, appeasing Vladimir Putin—a lying, murderous dictator. Make that make sense.” Trudeau also suggested that Trump’s tariff measures might be aimed at weakening the Canadian economy, but asserted that “Canada will never be the 51st state.”

Meanwhile, in a related development, the Federal Aviation Administration has announced a partnership with SpaceX to install Starlink terminals at various airports and is reportedly seeking funding for additional Starlink projects—a move that comes as Ontario debates its contract cancellation.

Ontario’s Ministry of Infrastructure has been contacted for further details regarding the cancellation of the Starlink deal, and additional updates are expected as the situation evolves.

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