Ontario un-cancels its Starlink contract after commerce battle ceasefire

Replace, February 3, 5:30PM ET: Following the information that Prime Minister Trudeau and President Trump have agreed to pause their tariff standoff for thirty days, Ontario premier Ford has announced on X that he’s equally pausing the province's cancelation of its Starlink contract:

"With the US pausing tariffs, Ontario may even pause our retaliatory measures. If President Trump proceeds with tariffs, we gained’t hesitate to take away American merchandise off LCBO cabinets or ban American firms from provincial procurement."

Ford added that the US and Canada "want to stay united and targeted on the true commerce battle we’re preventing, with China."

The unique story, which was headlined "Ontario cancels $100 million Starlink contract as a response to these tariffs," follows unedited.

Doug Ford, the premier of Ontario and a former staunch supporter of President Trump, has introduced that the Canadian territory shall be “ripping up” a $100 million contract with Elon Musk’s Starlink. The contract was signed in November of final 12 months and tasked Starlink with offering web service to distant elements of the province.

This comes after Trump introduced a 25 p.c tariff on almost all Canadian imported items. This spurred Canada to announce its personal 25 p.c tariff on American imported items. It appears like we’re heading right into a commerce battle for, uh, causes? Trump says it’s about fentanyl, although lower than one p.c of the drug arrives on this nation through Canadian routes. That is information that has been confirmed by each Canadian Prime Minister Justin Trudeau and the US Drug Enforcement Administration.

Beginning right this moment and till U.S. tariffs are eliminated, Ontario is banning American firms from provincial contracts.

Yearly, the Ontario authorities and its businesses spend $30 billion on procurement, alongside our $200 billion plan to construct Ontario. U.S.-based companies will…

— Doug Ford (@fordnation) February 3, 2025

So the place do Musk and Starlink are available in? The richest man on the planet is an in depth confidant of Trump and now has management over the so-called Division of Authorities Effectivity, or DOGE, a gaggle inside the administration tasked with cost-cutting and deregulation. Musk, who was not elected and is basically just a few man, has entry to the federal payment system and among the levers of the US Treasury.

Within the eyes of Ford, this is sufficient to hyperlink Musk to Trump’s tariffs. He stated that Ontario “gained’t do enterprise with folks hellbent on destroying our economic system" and that Musk needs to “take food off the table” of hard-working Canadians. The premier indicated that the contract will stay null and void till “US tariffs are eliminated.” Moreover, Ontario is banning all American firms from provincial contracts, which can trigger home companies to “lose out on tens of billions of {dollars} in new revenues.”

Ford additionally commanded the Liquor Management Board of Ontario (LCBO) to remove American-made spirits from store shelves. He joins a number of different premiers throughout the nation on this effort.

“Yearly, LCBO sells almost $1 billion price of American wine, beer, spirits and seltzers. Not anymore," he said in a statement. Ontario has a inhabitants of over 16 million folks and consists of cities like Toronto and Niagara Falls. Musk responded to Ford’s choice by posting “oh well” on X.

This text initially appeared on Engadget at https://www.engadget.com/big-tech/ontario-cancels-100-million-starlink-contract-as-a-response-to-those-tariffs-192310546.html?src=rss

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