Ontario’s government has taken a strong stance against the United States by terminating its C$100 million ($68 million) contract with Elon Musk’s Starlink, citing US-imposed tariffs. Premier Doug Ford announced the move, emphasizing that the province will no longer engage in business with American companies until the US lifts the import taxes on Canadian goods.
Ontario’s Response to US Tariffs
The decision comes in response to President Donald Trump’s recent announcement of a 25% tariff on Canadian and Mexican goods, along with a 10% tariff on Chinese imports. The tariffs, aimed at addressing trade imbalances and security concerns, have sparked immediate retaliation from Canada. Prime Minister Justin Trudeau pledged countermeasures, imposing C$30 billion in tariffs on US goods, with an additional C$125 billion to follow in the coming weeks.
Ford, who is currently running in a snap election, reinforced his commitment to protecting Ontario’s economy. “Ontario won’t do business with those determined to damage our economy,” he stated. The province had initially partnered with Starlink last November to provide high-speed satellite internet access to 15,000 underserved homes and businesses. However, with tensions escalating, Ford decided to scrap the agreement, even if legal disputes arise.
US-Canada Trade Dispute Intensifies
Ford’s decision aligns with a broader Canadian response to US tariffs. Other provinces, including Quebec, British Columbia, and New Brunswick, have also taken action by targeting American goods. Liquor control boards in these provinces have announced plans to remove American alcohol brands from their shelves and are reassessing contracts with US companies.
The broader trade standoff continues as Trump and Trudeau engage in negotiations. Despite a recent conversation between the two leaders, Canada remains skeptical about securing tariff relief. Meanwhile, Mexico’s President Claudia Sheinbaum managed to negotiate a one-month delay on tariffs after agreeing to deploy additional National Guard troops to the US-Mexico border.
Economic Fallout and Market Reactions
Financial markets have reacted sharply to the escalating trade war. All three major US stock exchanges opened lower on Monday, reflecting investor concerns over rising costs and economic uncertainty. As businesses prepare for potential price hikes, industries on both sides of the border are bracing for disruptions.
In response to Trump’s claims that Canadian fentanyl labs contribute to the US drug crisis, Trudeau reiterated that less than 1% of fentanyl entering the US originates from Canada. The Canadian government has allocated $1.3 billion to enhance border security and surveillance to counter these accusations.
What’s Next?
In the coming weeks, Canadian provincial leaders will travel to Washington, D.C., to lobby against the tariffs. They will also attend meetings with US state governors, seeking to minimize economic fallout and restore trade stability.
As tensions between the US and Canada mount, Ontario’s decision to sever ties with Starlink signals a growing rift in cross-border relations. Whether these tariffs will be lifted or lead to prolonged economic strain remains uncertain, but for now, both nations appear committed to defending their interests.
Stay updated with the latest developments on this ongoing trade dispute.
