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Ontario Cancels Starlink Contract Over U.S. Tariffs




The Decision


Ontario Premier Doug Ford announced that the province is canceling its $100 million contract with Elon Musk’s Starlink, citing newly imposed U.S. tariffs on Canadian imports by former President Donald Trump.


The contract, signed in November 2023, was meant to provide high-speed internet access to 15,000 rural and remote homes and businesses in Ontario by June 2025. Ford justified the move as a direct response to Trump’s tariff policies, calling them harmful to Canada’s economy.


“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” Ford wrote in a post on X.


Why It Matters?


This move is part of Canada’s growing pushback against Trump’s recent announcement of steep tariffs on imports from Canada, Mexico, and China. Trump has proposed a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports.


In response, both Canada and Mexico have introduced retaliatory tariffs on American goods. Ford is now taking that retaliation further by cutting ties with U.S. companies involved in critical infrastructure projects.


Ford warned that American businesses stand to lose “tens of billions of dollars” in future revenues as Ontario and other Canadian provinces review their contracts with U.S. firms. He also announced that Ontario would ban U.S. companies from bidding on provincial contracts until the tariffs are lifted.


Impact on Rural Ontario


The now-canceled Starlink contract was part of a broader effort to expand high-speed internet access to underserved rural and northern communities. The province had selected Starlink, operated by Musk’s SpaceX, after an open bidding process in which only two companies—Starlink and the Canadian-based Xplore Inc.—met the coverage requirements.


With Starlink out of the picture, Ontario must now find an alternative provider to deliver high-speed internet to these regions. Xplore Inc., the losing bidder in the initial process, may now have another opportunity to secure the contract.


Musk’s Role and Trump Connection


Elon Musk, who owns SpaceX and Starlink, recently became an advisor to Trump’s administration, overseeing a new initiative called the “Department of Government Efficiency” (DOGE). His proximity to Trump has further fueled tensions in the ongoing trade dispute.


Ford’s decision to cut ties with Starlink aligns with Canada’s broader stance against Trump’s trade policies, but it also raises questions about whether provinces will reconsider deals with other U.S.-based tech and infrastructure firms.


What’s Next?


The cancellation signals a tougher trade stance from Canadian leaders and may influence how other provinces respond to U.S. tariffs.


For rural Ontario residents, however, the decision raises concerns about how and when they will receive high-speed internet access. Without Starlink, the provincial government will need to move quickly to find a new provider to meet its connectivity goals.


Meanwhile, trade tensions between Canada and the U.S. are expected to continue escalating, with potential economic consequences on both sides of the border.



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