Ontario Premier Doug Ford has announced that the province is holding off on canceling its $100 million contract with Starlink. This decision comes after the United States and Canada agreed to a temporary pause on their escalating tariff standoff.
On Monday Ford had announced that Ontario would be “ripping up” the contract, which was signed in November 2024, as a retaliatory measure against U.S. tariffs imposed by President Donald Trump. The contract was intended to bring internet service to remote parts of Ontario, a vital step in improving connectivity for underserved communities.
However, with the announcement of a 30-day ceasefire in the U.S.-Canada tariff battle, Ford took to X to confirm that Ontario is also pausing its economic countermeasures.
“We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail,” Ford wrote. “With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures.”
The tensions began when Trump introduced a 25% tariff on nearly all Canadian imports, citing concerns over drug trafficking, despite data from both Canadian authorities and the U.S. Drug Enforcement Administration showing minimal fentanyl movement through Canada. In response, Prime Minister Justin Trudeau’s government announced an equivalent 25% tariff on American imports, setting the stage for a trade war between the two close allies.
Ford’s initial response to the tariffs was to take strong retaliatory actions against American businesses operating in Ontario. His measures included banning American companies from provincial procurement contracts and ordering the Liquor Control Board of Ontario (LCBO) to remove U.S.-made spirits from its shelves—a move that would impact nearly $1 billion worth of sales annually. These measures have also been paused.
Musk’s connection to the U.S. government through his involvement with President Trump and the Department of Government Efficiency (DOGE) had positioned him as a target in this dispute. Ford, who has accused Musk of being aligned with Trump’s economic strategies, previously stated, “We won’t do business with people hellbent on destroying our economy.”
However, with the pause in tariffs, Ford has taken a more measured approach, holding off on the Starlink contract cancellation for now. Nevertheless, he warned that the threat of tariffs remains and that Canada must be prepared for future economic battles.
“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs. Whether it’s tomorrow, in a month, or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants.”
