In a dramatic turn of events, the Ontario government’s plan to cancel a major deal with Starlink, the satellite internet company owned by Elon Musk, was put on hold just hours after it was announced. The deal, worth $100 million, was set to provide high-speed internet to thousands of households and businesses in northern and rural Ontario.
This was a major step in the province’s plan to ensure that even those in the farthest corners of Ontario would have access to high-speed internet. But on Monday, Premier Doug Ford suddenly announced that the contract would be “ripped up” in response to threats of new tariffs from the United States.
Ford’s Retaliatory Measures Linked to Tariff Threats
The announcement came just days before new tariffs were expected to be imposed by U.S. President Donald Trump. The Ford government had been preparing for tough measures in retaliation to these tariffs, and the cancellation of the Starlink deal was part of this response.
Ford’s decision to cancel the deal was linked to his anger over the trade situation between Ontario and the U.S. He had stated that Ontario would not do business with anyone, including Musk’s company, who he believed was hurting Ontario’s economy.
Trump’s Reckless Tariffs Could Backfire, Forcing U.S. to Rely on Sanctioned Venezuelan Oil
He even made it clear that the province hadn’t paid Starlink any money yet, so they wouldn’t lose anything by pulling out of the deal. The Premier was determined to show that his government would not stand idly by when it came to protecting jobs and the province’s economy from outside pressures.
A Quick Reversal Following Tariff Suspension
However, by late afternoon, the situation had shifted. Prime Minister Justin Trudeau announced that the threatened tariffs would be suspended for 30 days, allowing the two countries to work out an agreement. With this new development, Ford’s team quickly announced that the planned retaliation, including the cancellation of the Starlink contract, would also be paused.
In response to a question about whether the deal would now move forward, a spokesperson for the Premier confirmed that the Starlink contract would proceed as planned.
Despite this, the Ontario government made it clear that if the tariffs were ever imposed in the future, the Starlink contract would still be canceled. Similarly, Ontario’s plan to remove American alcohol from the shelves of its liquor stores was also put on hold for now. Both measures would be revived only if the trade conflict with the U.S. escalated further.
Trump’s Bold 25% Tariffs on Canada and Mexico, Oil Exemption Still Uncertain
Opposition Parties Call for Cancellation
The brief pause of the Starlink deal didn’t sit well with all of Ontario’s political parties. The Ontario Liberals, led by Bonnie Crombie, continued to push for the cancellation of the contract, regardless of the tariff situation.
Crombie described the agreement as a “sweetheart deal,” implying that it was unfair and only benefited Musk and his company. She also pointed to Musk’s strong ties to U.S. politics, including his support for Trump, as a reason for not doing business with him.
While Ford’s government had defended the contract in the past, stating that it was part of their commitment to providing high-speed internet to rural Ontarians, opposition parties were not convinced. Crombie and the Liberals argued that the contract should never have been signed in the first place and that Ontario should not be doing business with someone who had connections to a controversial U.S. president.
Despite the political backlash, Ford’s team stood firm on the deal for now, indicating that it would continue unless tariffs from the U.S. were imposed again. For now, the cancellation threat remains in limbo, with Ontario’s decision on the Starlink deal closely tied to developments in the ongoing trade situation between Canada and the United States.
