Ontario to kill Starlink contract over Trump tariffsOntario to kill Starlink contract over Trump tariffs

Ontario Premier Doug Ford used Elon Musk's social media site X to report that he would be ripping up a contract with SpaceX's Starlink, signed in November, over Trump's tariffs on Canada.

Nicole Ferraro, Editor, host of 'The Divide' podcast

February 3, 2025

3 Min Read
satellite dish internet Starlink
(Source: Mariusz Burcz/Alamy Stock Photo)

Ontario's premier Doug Ford said he will be "ripping up" the province's contract with SpaceX's Starlink in a retaliatory move against tariffs set to be imposed on Canada by the Trump administration.

"We'll be ripping up the province's contract with Starlink. Ontario won't do business with people hellbent on destroying our economy," Ford said on X

Both X and SpaceX are owned by Musk, who spent his weekend gutting the US Agency for International Development (USAID), which he claims to be "shutting down" with the president's blessing (which is not actually a legal way to shut down a US federal agency); as well as reportedly gaining access to sensitive Treasury department data via his unofficial Department of Government Efficiency, or DOGE.

Ontario had announced its contract for $100 million Canadian dollars (US$68.5 million) in November 2024 with SpaceX's Starlink through which the company would connect 15,000 rural locations to low-Earth orbit (LEO) satellite broadband service beginning June 2025.

The comment from Ford about ripping up the contract was part of a longer post in which he said Ontario is "banning American companies from provincial contracts" until tariffs are removed.

Doug Ford post on X that reads: Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.   Every year, the Ontario 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.   We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy.   Canada didn't start this fight with the U.S., but you better believe we're ready to win it.

"Every year, the Ontario 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," he said.

Trump tariffs

The Trump administration announced it will start imposing tariffs tomorrow (Tuesday, February 4) on products from Canada (25%) and China (10%). As of Monday morning, Trump delayed a 25% tariff on products from Mexico for one month.

In comments to the media over the weekend, Trump admitted that Americans may "feel some pain" from his tariff policy.

The stock market reacted to the expected tariffs on Monday (February 3), with the Nasdaq dipping 2%, the S&P 500 dipping 1.5% and the Dow Jones Industrial Average down 1% in early trading, according to Seeking Alpha.

[Update; 2/3/25 at 4:45 p.m. ET: By the end of the day Monday, the Trump administration agreed to delay Canada's tariffs for at least 30 days, as confirmed by Canadian Prime Minister Justin Trudeau on X. In response, Ontario Premier Doug Ford also said on X that "with the U.S. pausing tariffs, Ontario will also pause our retaliatory measures. Ford added: "If President Trump proceeds with tariffs, we won’t hesitate to remove American products off LCBO shelves or ban American companies from provincial procurement." Light Reading has reached out to clarify that this pause on retaliation includes a pause on Ford's threat to rip up Ontario's Starlink contract and will update this story accordingly.]

About the Author

Nicole Ferraro

Editor, host of 'The Divide' podcast, Light Reading

Nicole covers broadband's impact on society, with a focus on policy and the digital divide. She hosts The Divide on the Light Reading Podcast and tracks broadband builds in The Buildout column.

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