Ontario Responds To Trump Tariff By Pitching Starlink Deal Into The Trash

Updated The provincial government in Ontario, Canada is hitting back at President Trump's 25 percent tariffs on the US' northern neighbor by scrapping a deal with Elon Musk's Starlink.

Ontario Premier Doug Ford announced the move at a press conference today during a campaign stop. The decision to abandon its deal with Starlink, operated by Musk's SpaceX, comes less than three months after the Canadian province struck a deal with the rocket maker to launch the Ontario Satellite Internet (ONSAT) program.

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

Elon Musk at Trump's 2025 inauguration indicating the general direction of Starlink satellite launches ... Click for source

Ontario, Canada's economic powerhouse, inked a deal with Starlink in November 2024, to provide satellite internet access to 15,000 unserved and underserved homes and businesses by June of this year. 

It's not clear how much the deal was worth, but the Ontario government noted ONSAT was part of a larger $4 billion investment to expand high-speed internet access to remote portions of the province. The government described the deal as "the largest single investment in high-speed internet, in any province, by any government in Canadian history." 

The ONSAT program had been in the works for quite some time, with Ontario's infrastructure agency saying in January 2024 that it was evaluating proposals from SpaceX and Canadian-based Xplore, Inc. Ford didn't mention Xplore by name during his press conference, but hinted that the abandoned Starlink deal would be offered to them in Musk's place. 

"A Canadian company didn't have the infrastructure ready," Ford said of the decision to go with Starlink, adding that it would have taken the other bidder an additional two years to build the required infrastructure. 

"So we're going to wait two more years [to connect] 15,000 people in the far north," Ford said. The Register has reached out to Xplore to see if it has been in discussions with the Ontario government since the news, but hasn't heard back. 

By targeting Trump ally Elon Musk's bottom line in response to newly enacted tariffs on Canada, Ford is likely trying to hit the administration where it hurts - specifically the pocketbook of the world's richest man, who dumped millions of dollars into ensuring Trump got elected and earning himself a seat at the table. 

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But it's not just Starlink being targeted by Ontario: Ford said he isn't allowing a single American company to do business with the province until the tariffs are abandoned. 

"Starting today, and until US tariffs are removed, Ontario is banning American companies from provincial contracts," Ford said. "I'm urging all 444 municipalities to do the same."

The Liquor Control Board of Ontario, a government agency responsible for the majority of alcohol distribution in the province, will also cease sales and wholesaling of US products beginning tomorrow, Ford said over the weekend. 

Given the LCBO's significant role in alcohol distribution, many non-government retailers and restaurants selling US-made beverages may need to find alternatives.

"US based companies will now lose out on tens of billions of dollars in new revenues," Ford said today. "They only have President Trump to blame."

SpaceX didn't respond to questions for this story. ®

Updated to add at 2215 UTC

The tax on Canadian imports has been put back at least a month following a conversation between President Trump and Canadian Prime Minister Justin Trudeau. "Proposed tariffs will be paused for at least 30 days while we work together," the prime minister tweeted.

We assume that means Canada's retaliatory levies are also on hold. Trudeau also promised to step up efforts to police the US-Canada border to counter organized crime and fentanyl trafficking.

Meanwhile, Ontario is pausing its retaliatory measures, including ripping up the Starlink deal, while the tariffs on Canadian imports into the US are on hold.