Ontario 'Ripping Up' Contract With Musk's Starlink as Canada Targets Trump Allies in Trade War

Ontario Premier Doug Ford said Monday that his government will exclude American companies from provincial contracts and cancel a massive deal with Elon Musk's Starlink satellite internet service in retaliation for U.S. President Donald Trump's imposition of 25% tariffs on Canadian goods.

"Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts," Ford—who leads the Progressive Conservative Party of Ontario—said on social media.

"Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario," he continued. "U.S.-based businesses will now lose out on tens of billions of dollars in new revenues."

"They only have President Trump to blame," added Ford, who once professed his "unwavering" support for the Republican during his first White House term. "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."

"I don't care if it's a toothpick. We need to purchase from Canada and Ontario."

Last November, Ontario and Starlink signed a C$100 million (USD$68.6 million) deal to provide high-speed internet service for around 15,000 eligible homes and businesses in remote rural communities in northern parts of the province by June 2025.

However, Ford on Monday accused Musk—who gave Trump's campaign tens of millions of dollars and heads the president's Department of Government Efficiency (DOGE)—of being "part of the Trump team that wants to destroy families, incomes, destroy businesses" by waging a trade war.

"He wants to take food off the table of people, hard-working people, and I'm not going to tolerate it," Ford said of the world's richest person. "We just aren't going to be using American companies."

"And no matter if we are building a hospital, if we're building anything, if we're building a dog house, I want to make sure we are using Ontario steel, Canadian products, Canadian wood, Ontario wood," he added. "I don't care if it's a toothpick. We need to purchase from Canada and Ontario."

Ford also ordered the Liquor Control Board of Ontario (LCBO) to remove U.S.-imported alcohol products from store shelves in retaliation for the tariffs.

"Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers," he said on Sunday. "Not anymore."

Musk reacted to the loss of the Starlink contract with Ontario with a two-word post on his X social media platform saying, "Oh well."

Ford's move followed Canadian Prime Minister Justin Trudeau's announcement Saturday of retaliatory tariffs targeting Republican-led states and Trump allies after the U.S. leader said he would impose levies of 25% on Canadian and Mexican imports and 10% on goods from China.

"Canadians understand that we need to respond to this," explained Trudeau, who is set to resign once his Liberal Party selects a new leader. "We need to respond in a way that is appropriate, that is measured but forceful, that meets the moment."

Trump singled out Canadian energy for a reduced 10% tariff. On Monday, he announced a deal with Mexican President Claudia Sheinbaum to pause U.S. tariffs for one month in exchange for the deployment of 10,000 Mexican troops to the country's northern border to target drug trafficking and, according to Trump, prevent migrants from entering the United States.

Frustration with Trump's policies and actions—which include ongoing calls to make Canada the "51st state"—was on display over the weekend as Canadian fans attending National Basketball Association and National Hockey League games against visiting U.S. rivals loudly booed pregame performances of "The Star-Spangled Banner."