Doug Ford, Ontario’s Premier and a former staunch supporter of President Trump, has declared that the Canadian province will be “ripping up” a $100 million contract with Elon Musk’s Starlink. This contract, signed in November last year, was intended to provide internet services to remote areas of Ontario.
This development follows Trump’s announcement of a 25 percent tariff on nearly all Canadian goods, prompting Canada to reciprocate with its own 25 percent tariff on American imports. This escalation signals a potential trade war. Although Trump cites fentanyl as the reason for these tariffs, less than one percent of this drug enters the U.S. through Canadian routes, a fact confirmed by both Canadian Prime Minister Justin Trudeau and the US Drug Enforcement Administration.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
How do Musk and Starlink fit into this situation? Musk, a close ally of Trump, now oversees the so-called Department of Government Efficiency (DOGE), a unit aimed at cost-cutting and deregulation. Despite not being elected, Musk has access to the federal payment system and certain levers of the US Treasury.
Ford believes this connection implicates Musk in Trump’s tariff strategy. He stated that Ontario “won’t do business with people hellbent on destroying our economy” and accused Musk of wanting to “take food off the table” for hardworking Canadians. Ford announced that the contract will remain null and void until “US tariffs are removed.” Furthermore, Ontario is banning all American companies from provincial contracts, which is expected to cause significant revenue losses for local businesses.
In addition, Ford instructed the Liquor Control Board of Ontario (LCBO) to remove American-made spirits from store shelves. This move aligns with similar actions taken by other premiers across Canada.
“Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers. Not anymore,” he stated. Ontario has a population exceeding 16 million, including major cities like Toronto and Niagara Falls. In response to Ford’s decision, Musk simply posted “oh well” on X.
This article originally appeared on Engadget at Engadget.
