Doug Ford Cancels Starlink Contract Amid U.S. Tariff Dispute

Ontario Premier Doug Ford has decided to cancel a contract worth nearly $100 million with Elon Musk‘s Starlink. Ford claims that recent U.S. tariffs pose a risk to Canadian businesses and that Ontario will no longer engage with American firms until these tariffs are removed.

The contract, which was signed back in November, was intended to provide high-speed internet to 15,000 remote and rural locations across Ontario. However, Ford's recent announcement indicated a shift in strategy, stating that procurement from American companies would now be restricted.

Details of the Cancellation

On Monday, Ford disclosed Ontario's decision to terminate its agreement with Starlink, a subsidiary of Musk's SpaceX, following President Donald Trump's recent implementation of tariffs on Canadian goods. During a public address in Etobicoke, Ford expressed his view that Musk is part of an effort that harms families and businesses.

Ontario has an annual procurement budget of $30 billion. Ford emphasized that American suppliers will miss out on substantial revenue opportunities due to these restrictions, directing the blame at President Trump.

Political Reactions

The cancellation follows criticism Ford faced regarding the Starlink deal. Ontario Liberal Leader Bonnie Crombie previously urged for the contract's annulment, advocating for a preference towards Canadian service providers. Other opposition figures, including NDP Leader Marit Stiles and Green Party Leader Mike Schreiner, supported the decision while questioning the rationale behind awarding the contract to Musk's firm in the first place.

Impact of the Decision

This decision reflects an escalating trade dispute with the United States, Ontario's largest trading partner. The action taken could significantly impact American firms that depend on receiving regional contracts from Ontario.

Musk's response came on X, where he simply stated, "Oh well." Ford defended the original contract, mentioning that only two companies, Starlink and Xplore Inc., met the required technical specifications. Now, Ford insists that pursuing a Canadian alternative is necessary, while confirming that no payments have been made to Starlink yet.

Starlink's Role in Canada

This controversy arises amid Starlink's ongoing expansion efforts in Canada, where the service now boasts around 400,000 subscribers. The company is also in the news for its new partnership with Apple Inc. and T-Mobile US Inc., designed to offer satellite-enabled texting on iPhones, currently in beta testing.

tariff, business, contract, internet