Ontario has terminated a $100-million contract with Elon Musk’s Starlink, a satellite internet provider, as part of its response to trade tensions between Canada and the United States.
Premier Doug Ford announced the decision, stating that the province will no longer award contracts to companies based in the U.S.
The contract, signed in November, was intended to bring high-speed internet to 15,000 homes and businesses in rural and remote areas of Ontario by June 2025.
However, the growing trade conflict between the two countries led to the cancellation. Ford had previously warned of such measures before Canada and the U.S. reached a temporary agreement last month.
Musk, who has close ties to U.S. President Donald Trump, has played a key role in the American government, leading an office focused on streamlining agencies.
His involvement in politics has made his businesses, including Starlink, a target in the ongoing dispute.
When asked about the cost of breaking the contract, Ford did not provide details but insisted the decision was based on principle.
He pointed out that Musk had benefited from studying in Canada, yet his actions now hurt the country.
Ontario’s move is part of a broader effort to stop doing business with U.S. companies.
The province spends around $30 billion annually on procurement, and officials have been directed to review existing contracts carefully.
Other American firms working with Ontario could also be affected by these changes.
Ford expressed support for a national push to prioritize Canadian-made products.
He also warned that Ontario might impose a 25 percent surcharge on electricity exports to U.S. states like New York, Michigan, and Minnesota.
If trade tensions continue, he suggested the province could go even further by cutting off power supply.
Additionally, Ford stated that Ontario is looking into restricting its exports of high-grade nickel, a mineral widely used in U.S. manufacturing.
He claimed that Ontario supplies half of the nickel used in the U.S. and said the province is willing to stockpile or send it elsewhere if necessary.
