OTTAWA—The onset of a U.S.-led tariff war with Canada, Mexico and China triggered turmoil in global markets and prompted Ontario to cancel its contract with Elon Musk‘s Starlink satellite company and to ban American companies from provincial contracts.
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” said PC Leader Doug Ford in a written statement Monday.
Starting today and “until U.S. tariffs are removed,” Ford said Ontario would ban American companies from provincial contracts, noting that each year the provincial government and its agencies “spend $30 billion on procurement, alongside our $200 billion plan to build Ontario.”
“U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame,” Ford said.
Cancelling the Starlink contract directly targets Starlink owner Musk, a key advisor of U.S. President Donald Trump.
The Ontario government signed a $100-million deal in November with Elon Musk’s SpaceX to deliver high-speed internet to remote residents in rural and northern Ontario.
“Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” Ford said, ahead of a call expected between Trump and Prime Minister Justin Trudeau Monday.
Trudeau has responded to Trump’s 25-percent tariffs on Canadian products and 10-percent surcharge on oil with a plan to impose 25-percent tariffs on a range of American products worth up to $30 billion, with another layer of counter-duties $125 billion worth of American imports to come in three weeks.
The tariffs and counter-tariffs take effect Tuesday, as provinces ramp up their own response to Trump.
Ontario, Manitoba, N.S. and B.C. have banned American liquor from store shelves, as political leaders pushed a “Buy Canadian” response to Trump’s weekend announcement he would impose
The impact of Trump’s tariffs on American consumers and households was dominating U.S. news headlines Monday and sent a chill through global markets. The Canadian dollar slumped, and late Sunday, Trump told reporters that there may be “some pain” for Americans.
Ontario Liberal Leader Bonnie Crombie said she was “glad” Ford took her advice.
“I’ve been calling to rip up the sweetheart deal Doug Ford gave Elon Musk on Starlink since (Trump’s) inauguration,” Crombie said Monday.
“Glad it’s finally happening. But let’s be clear: this contract never should have been signed in the first place. Just another backtrack by Doug on his backward priorities,” she said on the campaign trail for the Feb. 27 Ontario election.
This is a developing story.
