Ontario Cancels $100M CAD Starlink Contract Amid U.S.-Canada Trade Tensions

On Monday, Ontario Premier Doug Ford announced that the province would be “ripping up” its $68 million ($100 million CAD) contract with Elon Musk’s Starlink satellite internet service. The decision comes amidst escalating trade tensions between the U.S. and Canada following President Donald Trump’s announcement of a 25% tariff on nearly all Canadian imports. In retaliation, Canada imposed its own 25% tariff on U.S. goods.

However, later the same day, Ford reportedly hit pause on the plan after Trump chose to delay the tariffs for 30 days. This came after Canadian Prime Minister Justin Trudeau announced several concessions, including deploying 10,000 “frontline personnel” to strengthen security along the 5,500-mile-long Canada-U.S. border.

Ontario’s now-canceled Starlink contract, signed in November 2024, was intended to deliver high-speed internet to remote areas in the province. Starlink, a division of Musk’s SpaceX, has been actively pursuing government contracts to expand its satellite internet services globally.

Ford’s Criticism of Musk and U.S. Trade Policies

During a press conference earlier on Monday, Ford also announced that other U.S.-based companies would be banned from future provincial contracts until the U.S. government lifts the tariffs. The Premier criticized Musk, calling him “part of the Trump team that wants to destroy families, incomes, and businesses.”

“[Musk] wants to take food off the table of hard-working people, and I’m not going to tolerate it,” said Ford. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”

Musk, who has become a close ally of Trump, now oversees a government unit known as the Department of Government Efficiency (DOGE), which focuses on cost-cutting and deregulation.

What’s Next?

The abrupt cancellation of the Starlink deal highlights the growing economic and political strain between Canada and the U.S. as trade policies shift. Starlink has not yet responded to requests for comment.

Correction: This article originally stated the Starlink contract was worth $100 million instead of $100 million CAD. It has also been updated to reflect Monday’s developments, including the delayed implementation of Trump’s tariffs.