Ontario Terminates Starlink Contract Amid U.S.-Canada Tariff Dispute

Starlink satellite dish on roof of residential building

On February 3, 2025, Ontario Premier Doug Ford announced that he was canceling a C$100 million (approximately USD 68 million) contract with Starlink, a SpaceX subsidiary and Elon Musk’s satellite internet company. This action directly responds to U.S. President Donald Trump’s recent decision to impose tariffs on Canadian imports. Ford emphasized that Ontario will no longer engage in business with entities perceived as detrimental to the province’s economic interests. “Ontario won’t do business with people hellbent on destroying our economy,” Ford stated. The contract, signed in November 2024, was intended to provide high-speed internet access to 15,000 homes and businesses in remote communities in Ontario. Starlink has been instrumental in delivering satellite-based internet services to underserved regions globally.

President Trump’s administration announced a 25% tariff on nearly all Canadian imports, excluding oil, which faces a 10% surcharge. These tariffs are set to take effect soon. In retaliation, Canadian Prime Minister Justin Trudeau declared that Canada would impose 25% tariffs on C$155 billion worth of U.S. goods. Trudeau emphasized the importance of supporting fellow Canadians during these challenging times and highlighted the potential adverse effects of the U.S. tariffs on both economies.

In response to the recent tariffs levied by the US government, Ontario is taking part in a more significant movement across Canada to push back. Their response includes removing American alcohol from provincial liquor stores and encouraging residents to buy local. The goal is to support Ontario’s industries while indicating that the province disapproves of the tariffs.

Trade tensions are escalating, with economists worried about a recession in the US and Canada. They warn that if the dispute over tariffs drags on, it could disrupt supply chains and make things even more expensive for shoppers. Meanwhile, leaders in both countries are getting ready to meet again to try to minimize the impact of the dispute. Ontario’s decision to cancel the Starlink contract signifies a pivotal moment in the ongoing U.S.-Canada trade dispute. As both nations navigate these challenges, the emphasis remains on protecting economic interests and supporting affected industries and communities.

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Charles Thomas

Charles Thomas is an accomplished leader in the telecommunications industry, serving as the Chief Strategy Officer at Rural Broadband Partners, LLC (RBP). With a mission to expand connectivity in underserved areas, Charles specializes in helping Internet Service Providers (ISPs) grow their businesses through innovative strategies and partnerships.

As the Editor-in-Chief of AGL Information and Technology, Charles leverages his industry expertise to provide in-depth analysis and insights on broadband, infrastructure, technology, AI, and machine learning. His work aims to educate and inspire stakeholders in the digital ecosystem.

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