Doug Ford says the Ontario government is “ripping up” its $100-million contract with Elon Musk’s Starlink to provide high-speed internet to northern and rural communities.
Ford, who plunged the province into an early election last week, said in a social media post Monday that effective immediately, the Progressive Conservative government is banning American companies from provincial contracts.
The move follows U.S. President Donald Trump’s decision to enact a 25 per cent tariff on all Canadian and Mexican imports beginning Tuesday; Ottawa and the provinces are retaliating, with Prime Minister Justin Trudeau imposing immediate tariffs on $30 billion worth of goods, followed by further tariffs on $125 billion worth of American products in 21 days.
“Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame,” Ford said in his post.
“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.”
In November 2024, Ford’s government signed the deal with Starlink so it could run a satellite-based internet program for roughly 15,000 households and businesses starting in June.
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Musk took centre stage during the U.S. election campaign, advising Trump, promoting his content on his social media platform X and appearing with him. He raised some US$200 million for Trump’s campaign and attended the president’s swearing-in ceremony. At an inauguration rally later that day, the Tesla CEO made a straight-arm, Nazi-like gesture. He later dismissed allegations that the gesture was a Nazi salute, calling it “dirty tricks” by critics, but never outwardly denied the accusations.
Musk also has tweeted occasionally about Canadian politics. He praised Trudeau’s Jan. 6 resignation announcement and dismissed him online by echoing Trump’s talk of Canada becoming a U.S. state.
“Girl, you’re not the governor of Canada anymore, so [it] doesn’t matter what you say,” Musk posted on Jan. 8.
Ontario Liberal Leader Bonnie Crombie, who had called for the Starlink contract’s cancellation since Trump’s inauguration, said in a post on X on Monday that she was “glad it’s finally happening.”
Crombie also said the Ford government shouldn’t have signed the “sweetheart” deal in the first place. Ford had defended the contract, and said on Jan. 24 – days before the Ontario election call – that it was part of his government’s promise to deliver high-speed internet to rural Ontarians.
Ford said Monday “we haven’t paid a penny” to Starlink, adding “we have a great deal” should the contract pullout be challenged because “he broke a trade deal.”
“I’m not going to support someone that is hellbent on destroying our province, destroying people’s families, taking jobs away from them,” he said.
“We’re done with that. We never started this fight whatsoever, but we’re going to win this fight.”
Hours after Trudeau unveiled Ottawa’s response, Ford said the LCBO was following through on his order to pull U.S. booze from its shelves. The LCBO is one of the biggest purchasers of alcohol in the world.
It’s a move other premiers are mimicking: Nova Scotia Premier Tim Houston directed the Nova Scotia Liquor Corporation to remove all U.S. alcohol from its shelves as of Tuesday.
British Columbia Premier David Eby said Saturday: “Effective today, I have directed BC Liquor stores to stop buying American liquor.”
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