Ontario once again promises to nix $100 million Starlink deal over Trump tariffs

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, according to reporting by the CBC. The reasoning behind this reversal is fairly obvious. The long-threatened Trump tariffs have officially gone into effect, which pops a 25 percent tariff on most Canadian goods and a 10 percent tariff on energy exports.

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 that the region will be forced to issue its own 25 percent surcharge on electricity exported to the US. He also said he would shut off electricity “with a smile” on his face to US customers if things aren’t resolved, according to the Toronto Sun.

“We also need to be ready to dig in for a long fight,” Ford said. “We need to be ready to escalate using every tool in our tool kit.”

It’s worth noting that Canada provides electricity to US residents in Michigan, New York and Minnesota, and a shutdown would impact over 1.5 million people. Ford has also floated the idea of issuing a surcharge to mineral exports or ending them entirely.

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.

“Today the US launched a trade war against Canada, their closest ally and their closest friend. At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said during a news conference. He also suggested that Trump was trying to weaken the Canadian economy as an annexation strategy, but that “Canada will never be the 51st state.”

Trump’s stated boogeyman behind these tariffs continues to be fentanyl, even though less than one percent of the drug arrives in this country via Canadian routes. This data has been confirmed by both Trudeau and the US Drug Enforcement Administration.

Don’t worry about SpaceX and Starlink’s financials. The Federal Aviation Administration (FAA) just announced a partnership to install Starlink terminals at various airports, which seems like auspicious timing. The agency also reportedly ordered staffers to “begin finding tens of millions of dollars for a Starlink deal.” Government efficiency at its finest. In any event, we’ve reached out to Ontario’s Ministry of Infrastructure for details regarding the the contract cancellation and will update this post when we find out more.