Ontario Premier Doug Ford has cancelled a $100-million deal with Elon Musk’s Starlink internet service in response to U.S. President Donald Trump’s new tariffs on Canadian goods. As part of the province’s actions, U.S. companies will also be barred from bidding on Ontario’s procurement contracts.
Ford made the announcement on Tuesday and warned lawmakers in New York, Michigan, and Minnesota that if the trade war continues, Ontario might impose a 25% surcharge on electricity sent to those states, or even cut off the supply entirely. Ontario provides electricity to around 1.5 million customers in these border states.
In addition, Ontario’s main liquor stores have begun removing U.S. alcohol from their shelves and websites as a direct result of the tariffs.
“This is not the outcome anyone wanted,” Ford said in Toronto. “We could have worked together to make Canada and the U.S. the two richest, most successful countries. Unfortunately, President Trump has chosen chaos instead.”
The tariffs came after Trump followed through on his threat to impose a 25% tariff on most Canadian goods, along with a 10% tariff on Canadian energy exports to the U.S.
Despite signing a trade deal with Canada and Mexico in 2020, Trump has now started a trade war with Canada, a close ally. Ford says Ontario will do whatever it takes to protect its workers and businesses from the impact of these tariffs.
Ford also suggested that Ontario may cut off exports of critical minerals to the U.S. if the trade dispute continues. “We need to be ready for a long fight,” he said. “We’ll use every tool at our disposal.”
Meanwhile, Canadian Prime Minister Justin Trudeau announced that Canada would respond with tariffs on $155 billion worth of U.S. goods, starting with $30 billion immediately. The remaining tariffs will be imposed in 21 days to give Canadian businesses time to adjust.
“This is a trade war against Canada, the U.S.’s closest ally,” Trudeau said. “At the same time, they’re trying to work with Russia, a dictator who has blood on his hands. It doesn’t make sense.”
Trudeau also expressed concern that Trump might be trying to weaken Canada’s economy with the goal of eventually annexing the country. “That will never happen. Canada will never be the 51st state,” he said.
Ford fully supports the federal government’s response to the tariffs, saying, “We have no choice but to respond.”
In a major move, Ford announced that U.S. companies would no longer be able to bid on Ontario’s $30 billion worth of procurement contracts, including those related to his $200 billion infrastructure plan, which involves highways, tunnels, transit, hospitals, and jails.
“They only have President Trump to blame,” Ford said, adding that Starlink’s contract to provide internet service to northern Ontario and First Nation communities is now “done, it’s gone.”
“We won’t give contracts to companies that support attacks on our economy,” he added.
