Key Points
- Ontario canceled a C$100 million contract with Starlink in response to U.S. tariffs and banned U.S. companies from bidding on government contracts.
- Canada imposed retaliatory 25% tariffs on C$155 billion of U.S. goods.
- Trump defended the tariffs, citing concerns over immigration and fentanyl.
- Canadian citizens responded by boycotting U.S. products and travel.
Ontario, Canada’s most populous province, has canceled a C$100 million ($68.12 million) contract with Elon Musk’s Starlink in response to new tariffs imposed by U.S. President Donald Trump. The province also announced a ban on U.S. companies from securing provincial contracts as part of its countermeasures.
The tariffs, which take effect on Tuesday, include a 25% duty on nearly all Canadian imports except oil, which faces a 10% surcharge. Economists warn that these tariffs could push Canada into a recession if they remain in place.
The news sent shockwaves through Canada, which has long maintained close trade relations with the U.S. Ontario Premier Doug Ford condemned Trump’s actions, stating that American companies would lose billions in potential revenue. “We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hell-bent on destroying our economy,” Ford said in a post on X (formerly Twitter).
The now-canceled contract, signed last November, aimed to provide high-speed internet to 15,000 homes and businesses in remote Ontario communities. Starlink has yet to comment on the decision.
Prime Minister Justin Trudeau announced 25% retaliatory tariffs on C$155 billion worth of U.S. goods at the federal level. The Canadian government strongly opposes the U.S. measures, which also target Mexico, and sees them violating the North American trade agreement.
Trump defended the tariffs, claiming they would remain until Canada takes stronger action against illegal immigration and fentanyl smuggling. He confirmed speaking with Trudeau on Monday and planned another discussion later in the day. However, Trudeau’s office did not disclose details of their conversation.
Public outrage in Canada has been swift. Many citizens have canceled U.S. trips, boycotted American products—including alcohol—and expressed frustration at sporting events. Meanwhile, White House economic advisor Kevin Hassett downplayed the situation, claiming Canada had “misunderstood” the tariffs and misinterpreted them as a trade war.