Ontario, Canada’s most populous province, has decided to stop doing business with American companies until the U.S. removes tariffs on Canadian goods.
According to the BBC, Ontario Premier Doug Ford announced that his government is canceling a C$100 million ($68 million) contract with Elon Musk’s satellite internet company, Starlink. Ford said, “Ontario won’t do business with people hell-bent on destroying our economy.” He made this decision while campaigning for a snap election he called last week.
The move comes after U.S. President Donald Trump announced a 25% tariff on Canadian goods, which is set to start on Tuesday. Trump also imposed a 10% tariff on Chinese goods and a lower 10% tariff on Canadian energy products.
Canadian Prime Minister Justin Trudeau responded by announcing plans to impose C$155 billion ($107 billion) in tariffs on U.S. goods if the U.S. moves forward with its tariffs. Ford said Canada has “no choice but to hit back, and hit back hard.”
Ford specifically targeted Starlink, which had partnered with Ontario to provide high-speed satellite internet to 15,000 homes and businesses in underserved areas. Elon Musk, the CEO of SpaceX (Starlink’s parent company), is a close ally of Trump.
When Ford announced the contract cancellation, Musk simply responded on X (formerly Twitter) with, “Oh well.” Ford said Ontario is prepared to fight any legal challenges from Starlink and is willing to pay a penalty if necessary, calling it a matter of principle.
Other Canadian provinces are also taking action against U.S. tariffs. Quebec, British Columbia, and New Brunswick are removing American alcohol from their stores and reviewing contracts with U.S. companies.
Meanwhile, Mexico reached a deal with Trump to delay tariffs for one month after agreeing to send more National Guard troops to the border. However, a Canadian official told the BBC that Ottawa doesn’t expect a similar deal.
Trump claims the tariffs are needed to protect Americans from illegal immigration and drugs like fentanyl, which he says is being produced in Canada by Mexican gangs.
However, Trudeau has said less than 1% of fentanyl entering the U.S. comes from Canada. In December, Canada announced a C$1.3 billion plan to strengthen border security, including better surveillance.
The tariffs have caused concern in financial markets, with U.S. stock exchanges dropping sharply on Monday. Canadian premiers are planning to travel to Washington, D.C., this month to lobby against the tariffs and meet with U.S. state governors.
The BBC highlights that while Ontario’s decision to cancel the Starlink contract is symbolic, it reflects the growing tension between Canada and the U.S. over trade. For now, both countries are digging in, with no clear resolution in sight.
Credit : BBC
https://www.bbc.com/news/articles/c5y7626l610o