Canadian Premier cancels $100,000,000 contract with Elon Musk in retaliation for Trump tariffs
Those that ‘promote economic attacks’ on Canada will be subject to the cancellation of contracts, as Doug Ford has threatened.
In response for the tariffs imposed by the President of the United States, a Canadian Premier has just canceled a contract with Elon Musk that was worth an astounding one hundred million dollars.
According to CBC, Doug Ford, the Premier of Ontario, Canada, has declared that the government has retaliated against Musk’s satellite internet company Starlink by severing its contract with the company. This action was taken in the midst of the ongoing trade dispute in North America.
Ford also stated that he would prohibit any and all corporations located in the United States from participating in any additional provincial procurement. This statement came after Ford criticized Trump for having “chosen chaos” above shared prosperity.
At the same time that President Donald Trump of the United States imposed fresh ‘catastrophic’ tariffs on the country, the sixty-year-old MPP threatened to cut off power to one and a half million people in the United States.
Despite the fact that the plans were put on hold for a period of thirty days, President Trump gave his approval to the proposal to implement tariffs of twenty-five percent on Canadian exports and ten percent on Canadian energy this week.
Not long after returning to the White House in January, the 47th President of the United States stated that China, Mexico, and Canada should be held “accountable for their promises to halt the flood of poisonous drugs into the United States.”
Trump, in an effort to exacerbate the situation, stated that the only “solution” for Canada to avoid the tariff would be for the country to become the “cherished” 51st state.
Musk, a tech millionaire and the founder of SpaceX, is also the leader of the Department of Government Efficiency (DOGE) task force, which is responsible for reducing costs for the United States government. Starlink is a subsidiary of SpaceX.
In November of the previous year, the company secured a contract with the province to bring high-speed internet to 15,000 homes and businesses located in rural and remote locations by the summer of this year.
Ford, however, responded to a question regarding the deal during a news conference that took place on Tuesday (March 4), saying, “It’s done, it’s gone.”
“We won’t award contracts to people who enable and encourage economic attacks on our province and our country,” he stated in addition.
Following the confirmation that it would no longer acquire or sell alcohol from the United States, the largest liquor wholesaler and retailer in Ontario has ultimately made this decision.
Not only did the Premier restate his threat to turn off power in the United States, but he also warned lawmakers in New York, Michigan, and Minnesota that if the trade war “persists,” Ontario will increase a 25 percent premium on electricity flowing through the border state, and it may even completely cut off the flow of electricity.
In the same vein, he also stated that the province had the ability to impose additional taxes or stop exporting minerals to the United States.
It was said by Ford that “this is not the outcome that anyone wanted.”
“We could have expended our efforts in order to make the United States of America and Canada the two countries that are the wealthiest, most successful, safest, and most secure on the entire planet. The unfortunate reality is that one individual, President Trump, has opted for chaos instead.
The provincial government is concerned that the imposition of import tariffs might result in a catastrophe for a number of essential businesses in Ontario, such as the production of steel and automobiles, while simultaneously driving up retail prices and stoking the fires of inflation.
Ford went on to say, “We also need to be prepared to dig in for a hard-fought battle.”
“We need to be ready to escalate using every tool in our tool kit.”
According to the Toronto Sun, Ford, who won a third majority last week, had previously stated, “If they want to try to annihilate Ontario, I will do anything, including cutting off their energy — with a smile on my face.” Ford’s victory was his third consecutive victory in the election.
The anguish must be experienced by them. Are they planning to attack us with force? We have to go back with twice the amount of effort.
In a significant move reflecting escalating trade tensions, Ontario Premier Doug Ford announced the cancellation of a $100 million contract with Elon Musk’s satellite internet company, Starlink. The contract, signed in November 2024, aimed to provide high-speed internet to 15,000 rural and northern Ontario residents.
This action is a direct response to U.S. President Donald Trump’s decision to impose a 25% tariff on Canadian goods, a measure announced in early February 2025. Premier Ford stated that Ontario would not engage with entities contributing to economic harm, emphasizing that businesses supporting such policies would be excluded from provincial contracts.
The cancellation of the Starlink contract is part of a broader strategy, with Ontario also banning U.S. companies from provincial procurement and considering additional measures. Ford remarked that U.S. businesses have President Trump to thank for potential revenue losses, highlighting the province’s readiness to defend its economic interests.
In response to these developments, Elon Musk has suggested that Premier Ford address concerns directly with President Trump, given Musk’s close association with the U.S. administration.
The trade dispute has led to retaliatory tariffs from Canada, affecting a wide range of U.S. goods. Prime Minister Justin Trudeau has condemned the U.S. tariffs as unjust, warning that the trade conflict could harm both nations’ economies.
These developments underscore the complexities of international trade relationships and the significant economic impacts of political decisions.
