Ontario Cancels $100M Contract with Musk’s Starlink, Bans American Firms from Provincial Contracts

February 3, 2025 TruthUSA

Ontario Premier Doug Ford announced the cancellation of a nearly $100 million contract with U.S. satellite internet provider Starlink in response to U.S. tariffs. Additionally, he declared a ban on all American companies from securing future provincial contracts.

“We’ll be tearing up Ontario’s contract with Starlink. Ontario will not engage in business with entities intent on harming our economy,” Ford expressed in a post on the social media platform X on Feb. 3.

Along with terminating the contract with Starlink, Ford revealed that Ontario would prohibit American companies from participating in provincial contracts. He emphasized the significant annual procurement expenditure of the Ontario government and its agencies, as well as a substantial plan for infrastructure development totaling $200 billion.

Several other provinces, including B.C., Nova Scotia, and Manitoba, also announced contemplation of barring American companies from provincial projects or procurement.

Starlink and its parent company, SpaceX, are under the ownership of Elon Musk, who serves as an adviser to U.S. President Donald Trump and coordinates with the U.S. Department of Government Efficiency in collaboration with the administration.

Ontario initially revealed the contract with Starlink in November, following the company’s success in a competitive bidding process to provide satellite internet to the province. The service, which was originally slated to launch in June 2025, aimed to use Starlink’s low-Earth orbit technology to deliver internet services to 15,000 rural and remote customers.

SpaceX logo and Elon Musk photo in this illustration taken on Dec. 19, 2022. Dado Ruvic/Illustration/Reuters

The Epoch Times attempted to reach out to SpaceX for comment, but did not receive an immediate response.

Upon learning of Ford’s decision on Feb. 3, Musk shared a link to a news article regarding the contract termination on his social media platform X, accompanied by a simple caption, “Oh well.”

Ford’s action forms part of Canada’s response to Trump’s imposition of a 25 percent tariff on most Canadian goods and a 10 percent tariff on Canadian energy exports, effective Feb. 4.

Trump justified his decision to impose tariffs on Canada and Mexico by citing border security concerns, particularly relating to the influx of illicit drugs and illegal migrants crossing into the United States. Additionally, he announced an extra 10 percent tariff on China, on top of existing levies, due to worries about the flow of synthetic opioids and their precursors from China to the U.S.

Canada declared a phased retaliatory tariff targeting $155 billion worth of American imports in response. The initial phase will impose tariffs on $30 billion of goods from the U.S., effective Feb. 4, covering various items such as meat, crops, lumber, firearms, and machinery. The remaining $125 billion will be subject to tariffs in the subsequent weeks to allow Canadian businesses time to adapt to the repercussions.

According to a Feb. 2 press release by the Department of Finance, these measures will stay in effect until the U.S. lifts the tariffs on Canadian products.

Source link