Ontario’s Premier, Doug Ford, just scrapped a huge $100 million deal with Elon Musk. Why? Because the U.S. slapped some tough new tariffs on Canada, and Ford wasn’t having it.
The contract was with Musk’s Starlink, the satellite internet company, but Ford cut ties as part of a bigger move to push back against Trump’s trade policies.
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He also made it clear that from now on, U.S. companies wouldn’t be getting any provincial contracts. He called out Trump directly, saying the U.S. president had “chosen chaos” instead of working together for economic growth.
Doug Ford cancels $100 million Starlink contract in response to US tariffs
Starlink had only signed the deal a few months ago, back in November. The plan was to bring high-speed internet to 15,000 homes and businesses in Ontario’s rural areas by summer.
But when reporters asked Ford about it at a press conference on March 4, he didn’t hold back. “It’s done, it’s gone,” he said.
“We won’t award contracts to people who enable and encourage economic attacks on our province and our country,” he added.
Ontario tightens restrictions on US companies amid escalating trade war
And this wasn’t just about Musk. Ontario’s liquor board also decided to stop buying or selling alcohol from the U.S. That’s a pretty big deal.
Ford also reminded lawmakers in states like New York, Michigan, and Minnesota that if things kept going in this direction, Ontario could slap a 25% surcharge on electricity flowing to the U.S. Or, if necessary, just cut off the power completely.
Not just that — he also hinted that Ontario might start limiting its mineral exports to the U.S. as well.
Trump’s new tariffs hit Canada hard, sparking major economic tensions
Trump had already delayed these tariffs for 30 days, but now they were officially in place — 25% on Canadian exports and 10% on Canadian energy. That’s huge.
After returning to the White House in January, Trump had made it clear he wanted to hold China, Mexico, and Canada “accountable” for drug-related issues in the U.S.
Then, just to add fuel to the fire, he said Canada’s best way out of this situation would be to just become America’s 51st state.
Ford threatens to cut power and resources to the US in retaliation
Ford wasn’t just talking tough — he was ready to take real action. He even warned that 1.5 million U.S. customers could lose power if these tariffs didn’t go away.
“This is not the outcome anyone wanted,” Ford said.
“We could have poured our efforts into making Canada and the U.S. the two richest, most successful, safest, most secure two countries on the planet. Unfortunately, one man — President Trump — has chosen chaos instead.”
Ford warns Ontario is prepared for a long economic battle
Ford made it clear: Ontario wasn’t just going to roll over. These tariffs could be a disaster for industries like auto manufacturing and steel production. Plus, they’d drive up prices for consumers, adding even more fuel to inflation.
“We also need to be ready to dig in for a long fight,” he said. “We need to be ready to escalate using every tool in our tool kit.”
Ford’s warning to the US: “They need to feel the pain”
Ford, who just won his third term, wasn’t sugarcoating anything. He told the Toronto Sun:
“If they want to try to annihilate Ontario, I will do anything, including cutting off their energy — with a smile on my face.”
“They need to feel the pain. They want to come at us hard? We’ve got to go back twice as hard.”
Musk’s role in the trade war: Starlink and the Department of Government Efficiency
Musk’s Starlink isn’t just any company. It’s part of SpaceX, and Musk himself is also leading Trump’s Department of Government Efficiency (DOGE) task force.
So, Ford’s decision to cancel this contract wasn’t just about Starlink — it was also a direct shot at someone who’s working closely with Trump.
Last Updated on March 5, 2025 by Reem Haqqi
