Ontario to Cancel $100 Million Starlink Deal Due to Trump Tariffs

Ontario to Cancel $100 Million Starlink Deal Due to Trump Tariffs
  • Ontario to cancel $100 million Starlink deal due to Trump tariffs
  • 25% tariff on most Canadian goods and 10% tariff on energy exports
  • Ontario may issue 25% surcharge on electricity exported to the US
  • LCBO to stop purchasing and selling US-made alcohol
  • Canada to issue retaliatory matching tariffs on US goods

Ontario Premier Doug Ford has once again promised to end the province's $100 million contract with Elon Musk's Starlink after reversing course back in February. The reasoning behind this reversal is fairly obvious, as the long-threatened Trump tariffs have officially gone into effect.

The contract was signed in November of last year and tasked Starlink with providing internet service to remote parts of Ontario. Ford, a former staunch supporter of President Trump, is prepared to go even further to protect Canada's interests. He said that if the tariffs persist, the region will be forced to issue its own 25% surcharge on electricity exported to the US.

Retaliation Measures

He also said he would shut off electricity 'with a smile' on his face to US customers if things aren't resolved. Ontario's primary liquor wholesaler, the LCBO, has confirmed that it will stop purchasing and selling US-made alcohol. Additionally, Prime Minister Justin Trudeau announced that Canada would be issuing its own retaliatory matching tariffs on US goods.

Trudeau criticized the US for launching a trade war against Canada, its closest ally and friend, while trying to work positively with Russia and appeasing Vladimir Putin. He suggested that Trump was trying to weaken the Canadian economy as an annexation strategy, but emphasized that 'Canada will never be the 51st state.'

Trump's stated reason behind these tariffs continues to be fentanyl, despite less than one percent of the drug arriving in the country via Canadian routes. This data has been confirmed by both Trudeau and the US Drug Enforcement Administration.