Ontario to cancel $100mn contract with Elon Musk’s Starlink

Unlock the White House Watch newsletter for free

Your guide to what the 2024 US election means for Washington and the world

The Canadian province of Ontario has said it will cancel a $100mn contract with Elon Musk’s Starlink in retaliation against US tariffs.

“Maybe Elon Musk can call his buddy. He is part of the Trump team,” premier Doug Ford said at an event in Toronto on Monday.

The deal, agreed in November, was intended to help connect 15,000 households in remote parts of Canada’s most populous province.

Ford said he would “be ripping up the province’s contract with Starlink. Ontario won’t do business with people hell-bent on destroying our economy.”

Canada’s provinces have launched several retaliatory measures since US President Donald Trump announced 25 per cent tariffs against the country on Saturday, including pulling American drinks from stores and banning US companies from provincial government contracts.

Ford said US companies would lose tens of billions of dollars in new contracts every year from Ontario alone.

Canada’s Prime Minister Justin Trudeau has already announced C$155bn (US$106bn) in tariffs against the US.

The two leaders spoke by phone on Sunday, but Canadian officials said their tariff response was not being co-ordinated.

Canada’s response was intended to put pressure on Republican lawmakers and other people with influence on Trump, by targeting businesses and jobs in their states, the officials said.

Former deputy prime minister Chrystia Freeland has suggested imposing tariffs on Tesla cars to fight back against Trump’s “billionaire buddies”. But Trudeau’s government has ruled out putting tariffs on particular brands, with officials saying levies could only be imposed on categories of products.

Musk’s Starlink satellite internet system had been embraced by many Canadians who struggle to get cheap, reliable internet in remote locations. The company said last year it had 400,000 active customers in Canada.