Ontario has cancelled its $100-million contract with Elon Musk-owned satellite internet company Starlink and will ban all United States (US)-based companies from taking part in provincial procurement as part of retaliatory measures in the North American trade war, Premier Doug Ford announced this morning.
Ford is following through on his threats from last month, before a 30-day détente was struck between Canada and the US. Starlink, a subsidiary of Musk’s SpaceX, inked a contract with the province this past November to provide high-speed internet to 15,000 homes and businesses in rural, remote, northern communities by June 2025.
“It’s done, It’s gone,” Ford said, referencing the Starlink contract, in a press conference this morning. “We won’t award contracts to people who enable and encourage economic attacks on our province and our country.”
“No matter if it’s services through the tech sector … we need to stop immediately and if they come to sue us, so be it.”
Musk has become an integral part of President Donald Trump’s White House, heading the so-called “Department of Government Efficiency” that has gutted American agencies and has met with foreign leaders, like Indian Prime Minister Narendra Modi, in Washington, DC. Musk’s proximity to the White House has made his businesses, like Tesla, X (formerly Twitter), and Starlink, a target in the trade war between Canada and the US.
When asked what it would cost to break the contract with Starlink, Ford didn’t appear to know, saying he would work on getting that information. He added that it’s “principle” to cancel the contract of President Trump’s “right-hand-man,” and that it’s ironic Musk is attacking the country and the province that gave him the opportunity to go to Queen’s University in Kingston, Ont. Musk enrolled in Queen’s University in 1990.
“He should be embarrassed to attack the people that took care of him for a number of years,” Ford said.
The Starlink contract cancellation is part of a larger procurement freeze by the province, which will no longer sign deals with US companies. The province spends an annual $30 billion on procurement, Ford said. He indicated this move could affect more American companies currently doing business with the province, and that he has asked the provincial public service, as well as his ministers, to go through contracts “with a fine tooth comb.”
RELATED: Deputy Chief Trade Commissioner on tariffs: Canada “not out of the woods yet”
“No matter if it’s services through the tech sector, or any other products, we need to stop immediately, and if they come to sue us, so be it,” Ford said. “We’re standing up for Ontario, we’re standing up for Canada, and we’re willing to fight in court.”
The Province of Ontario will be joining a national buy-Canadian sentiment, which has inspired apps like Buy Beaver that encourage users to buy locally. Ford noted that he “loved” the apps, but threatened to also legislate a policy that would require retailers to clearly mark Canadian and American-made goods on shelves if they did not do it independently.
Ford said he would be writing to the government officials of New York State, Michigan, and Minnesota to warn them that the province will immediately apply a 25 percent surcharge on the electricity it exports, and implied the province will not hesitate to shut off the power entirely if Trump escalates tariffs further.
Ford added that he would be working with the federal government to control Ontario’s exports of high-grade nickel. Ford claimed that 50 percent of the critical mineral in the US, which is used in manufacturing, comes from Ontario.
“If we have to stockpile it, if we have to ship it around the world, that’s what we’ll do,” Ford said.
Feature image courtesy Premier of Ontario via YouTube.