Ontario Premier Doug Ford has announced the cancellation of a $100 million contract with Starlink, a company led by Elon Musk, in response to the upcoming 25% tariffs announced by U.S. President Donald Trump. Additionally, Ford has stated that the province will suspend contracts with other U.S. companies until the tariffs are reversed.
Contract Details and Cancellation The contract with Starlink, signed in November, aimed to provide internet access to thousands of homes in remote and rural communities in Ontario. However, Ford’s administration has chosen to rescind the agreement as part of a broader strategy to protect the provincial economy from the negative effects of the U.S. tariffs.
Elon Musk, owner of Starlink through his tech company SpaceX, also heads the newly created Department of Government Efficiency (DOGE) under the Trump administration.
Political and Economic Reactions Ford expressed his displeasure in an interview on Fox News, questioning Trump’s decision to impose tariffs on his “closest friend and ally since 1867,” and highlighting more pressing global issues that should take priority. According to Ford, the province and its agencies spend $30 billion annually on government purchases, a flow of money that U.S. companies will no longer receive due to the trade war.
Additionally, Ford anticipates that inflation and interest rates will rise on both sides of the border until an agreement is reached to reverse the tariffs. He previously mentioned that Trump’s measures could cost Ontario 500,000 jobs.
Political Context in Ontario Ontario Liberal Party leader Bonnie Crombie, who had previously urged Ford to cancel the contract with Starlink, called the agreement a “favor deal.” Following the cancellation announcement, a party spokesperson expressed satisfaction that Ford is “finally putting Ontario first,” but questioned the existence of other possible “suspicious deals.”
Ontario is preparing for an early election on February 27, amid the trade war. Crombie, along with NDP leader Marit Stiles and Green Party leader Mike Schreiner, have criticized the early election as unnecessary.
Ongoing Bilateral Dialogue Trump and Trudeau spoke this morning and are expected to discuss the tariffs again later today. These talks are crucial as they could determine the future course of trade relations between Canada and the United States and potentially mitigate the impacts of the tariffs on both countries.
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