“US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”
Ontario Premier Doug Ford said on Monday that his government would be "ripping up" the nearly $100 million contract with tech mogul Elon Musk’s Starlink, citing the newly imposed US tariffs on Canadian goods. Ford stated that Ontario would also prohibit American companies from securing provincial contracts until the tariffs are lifted.
The agreement, signed in November, would provide high-speed internet via Starlink’s satellite service to more than 15,000 homes and businesses across Canada by June, CBC reported.
Speaking to the media on Monday, Ford said that Musk is "part of the Trump team that wants to destroy families, incomes, destroy businesses. He wants to take food off the table of people, hardworking people, and I'm not going to tolerate it."
Loading this lets X set cookies and collect data.
View on X"US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," he added in a statement on X.
Ford's announcement comes after US President Donald Trump slapped a 25 percent tariff on most Canadian goods, along with a 10 percent tariff on Canadian energy products.
Musk is an ally of Trump who currently oversees the so-called U.S. Department of Government Efficiency (DOGE) in collaboration with the administration.
The Starlink contract had already been the subject of criticism, with some like Ontario Liberal Leader Bonnie Crombie calling for its cancellation last week. "If he were serious about standing up to Trump, he would cancel his sweetheart deal with Elon Musk," Crombie said.
While Ford initially disagreed, he has since changed his tune. Ford added, "I think we have a very, very good case if it goes to court."
Infrastructure Ontario said in January 2024 that only two satellite internet providers were eligible to fulfill the province’s broadband expansion goals: SpaceX’s Starlink and Xplore Inc., a Canadian-founded company now owned by American investment firm Stonepeak. After a competitive bidding process, SpaceX secured the contract.
Starlink has seen rapid growth across Canada, surpassing Xplornet as the country’s leading provider of satellite-based rural and remote internet services in 2022, according to a December report from the Global Media and Internet Concentration Project.
As of 2024, the report estimated that Starlink had approximately 400,000 subscribers in Canada.
Libby’s Desk
Commentary and must-reads from Libby’s desk, straight to your inbox.
TPM Newsletter
The Post Millennial’s top stories, delivered to your inbox.
