Ontario Cancels Starlink Contract Over US Tariffs
Analysis based on 12 articles · First reported Feb 03, 2025 · Last updated Feb 03, 2025
The cancellation of the SpaceX — Starlink contract by Canada — Ontario and the broader ban on American companies from provincial contracts will negatively impact United States businesses, potentially costing them tens of billions in revenue. The ongoing trade war between Canada and the United States, initiated by Donald Trump's tariffs, is expected to lead to increased costs for consumers in both nations due to retaliatory tariffs on various goods.
Canada — Ontario Premier Doug Ford announced the cancellation of a $100 million Canadian contract with SpaceX — Starlink and a ban on American companies from provincial contracts. This decision is a direct response to United States President Donald Trump's imposition of sweeping tariffs on Canada and Mexico. The SpaceX — Starlink contract, signed in November, aimed to provide high-speed internet to rural and northern Canada — Ontario. Doug Ford stated that Canada — Ontario would not do business with entities perceived as 'hellbent on destroying our economy' and attributed the blame solely to Donald Trump. Canada and Mexico have also ordered retaliatory tariffs on American goods, with Canada's Prime Minister Justin Trudeau encouraging citizens to 'Buy Canadian Instead'. The trade dispute is expected to affect various industries, including telecommunications, retail, and manufacturing, with potential future tariffs on goods like vehicles, steel, and agricultural products. Donald Trump has defended his tariffs by citing national security concerns related to illegal immigration and drug trafficking.
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