Trump's Tariff Storm: Canada's Ontario Bans American Firms, Cancels Musk's Starlink Deal
February 3, 2025: Ontario, Canada: The province of Ontario has banned U.S.-based firms from securing government contracts, dealing a significant blow to American businesses, including Elon Musk’s Starlink. The decision comes in response to the sweeping tariffs imposed by the Trump administration on imports from Canada, Mexico, and China.
Also Read: Trump’s Tariff Storm: Europe Next as Trade War Intensifies with Canada, China, and Mexico
Ontario Premier Doug Ford announced the move, declaring that the province would terminate its $100-million deal with Starlink, a company owned by Musk. Starlink was contracted to provide high-speed internet to rural and northern Ontario communities.
Also Read: Canadian Fans Boo US Anthem Amid Trump’s Tariffs: A Viral Protest
“Ontario’s government and its agencies spend $30 billion annually on procurement, alongside our $200 billion development plan,” Ford said. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenue. President Trump is solely to blame for this. Canada didn’t start this trade war, but we’re ready to win it.”
The announcement follows Trump’s recent tariffs, which have triggered sharp responses globally. Ford added that his administration plans to remove American products from provincial liquor store shelves, echoing a similar measure by British Columbia Premier David Eby, who announced a ban on liquor purchases from U.S. Republican states.
Also Read: Things to Get Expensive in US After Trump’s Tariffs on Canada, Mexico, and China
The ban marks a significant shift in trade relations, particularly as Ontario is one of Canada’s largest provinces with an extensive procurement budget. Experts warn that the exclusion of U.S. businesses from such a lucrative market could lead to substantial financial losses for affected firms.
U.S. President Donald Trump responded by hinting at a broader agenda involving border security and economic policies. “Canada doesn’t even allow U.S. banks to open or do business there. What’s that all about? It’s also a DRUG WAR, with hundreds of thousands of people dying from drugs pouring through the borders of Mexico and Canada,” Trump posted on Truth Social, adding that he would discuss the matter further with Canadian Prime Minister Justin Trudeau.
The tariffs, described by Trump as necessary to protect American industries, have sparked fears of an escalating trade war. While Trump insists the measures aim to protect American workers, retaliation from trading partners like Canada signals a challenging path ahead for bilateral relations.
Ford’s actions, which include canceling contracts and barring American goods, underline Canada’s readiness to counteract U.S. policies. Whether this will lead to renegotiations or further escalate the standoff remains uncertain.
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