Ontario has cancelled its $100 million Starlink contract in response to Trump’s tariffs.
Premier of Ontario, Doug Ford, announced that the province has scrapped its contract with Elon Musk's satellite internet company Starlink.
The move was in retaliation to President Donald Trump's trade measures against Canada, reported CBC.
Ford also announced that all US-based companies would be banned from future provincial contracts, accusing Trump of 'choosing chaos' over cooperation.
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"It's done, it's gone," Ford said, referring to the contract. "We won’t award contracts to people who enable and encourage economic attacks on our province and our country."
The decision follows the US President's announcement of new 'catastrophic' tariffs on Canadian exports, including 25 percent tariffs on Canadian exports and 10 percent tariffs on Canadian energy.
The 60-year-old justified the move by claiming Canada, Mexico and China should be held 'accountable for their promises to halt the flood of poisonous drugs into the US.' However, the tariffs have been delayed for a second time due to uncertainty and blowback from financial markets.
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In a comment that further strained relations, Trump suggested that the only way for Canada to avoid tariffs was to become America’s 51st state.
Ford didn't take kindly to the remark. In response, he threatened to cut off power to 1.5 million US customers and placed a 25% surcharge on electricity exports to New York, Michigan and Minnesota.
Ford said: "This is not the outcome anyone wanted. "We could have poured our efforts into making Canada and the US the two richest, most successful, safest, most secure two countries on the planet. Unfortunately, one man — President Trump — has chosen chaos instead."
SpaceX's subsidiary Starlink signed a contract with Ontario in November 2023 to provide high-speed internet to 15,000 rural and remote homes by summer 2025.
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SpaceX is one of Musk’s many tech ventures, alongside his responsibilities of serving as a close ally of Trump and heading the Department of Government Efficiency (DOGE).
The decision to pull the plug has raised concerns for remote communities that struggle with internet access.
Sol Mamakwa, the Ontario NDP MPP for Kiiwetinoong, said the cancellation could leave many northern communities with even fewer options for connectivity.
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"My initial post of it was essentially to the people that messaged me from the north in my riding on how it's going to impact them," Mamakwa said, adding that those who have already subscribed to Starlink will not be affected.
Elsewhere, Ontario's liquor wholesaler and retailer has confirmed it will no longer buy or sell US alcohol. If the trade war continues, the province fears it could lead to a disaster in many Ontario industries, like auto manufacturing and steel production.
"We also need to be ready to dig in for a long fight," Ford pointed out. "We need to be ready to escalate using every tool in our tool kit."