Ontario has taken a drastic step in the ongoing trade battle with the United States. The province has cancelled a $100-million contract with Starlink, a satellite internet company. This contract, signed in November, aimed to bring high-speed internet to 15,000 rural and remote homes and businesses by June 2025.
Premier Doug Ford announced the decision, declaring the deal “done” and “gone.” He emphasized that Ontario would no longer work with companies linked to what he called “economic attacks” on the province and country.
Ford did not disclose how much it would cost to break the contract but insisted the decision was based on “principle.” He also criticized the billionaire behind Starlink, pointing out that Ontario played a role in his education. “He should be embarrassed to attack the people that took care of him,” Ford said.
This decision has sparked mixed reactions. Some Ontarians support Ford’s stance, arguing that it’s important to prioritize Canadian interests. Others worry that cancelling the deal could delay internet access for rural communities, leaving them without reliable connectivity. Critics also question the legality of breaking the contract and warn that Ontario could face expensive legal battles.
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Ontario Bans U.S. Companies from Provincial Contracts
Ontario isn’t stopping at Starlink. The province is banning all U.S.-based companies from bidding on government contracts. This means that any business from the U.S. will no longer be able to sign deals with Ontario for services, products, or technology.
The province spends around $30 billion annually on procurement, and Ford has ordered a review of all existing contracts. “No matter if it’s services through the tech sector or any other products, we need to stop immediately,” Ford said. “If they come to sue us, so be it.”
Ford’s announcement follows tensions between Canada and the U.S. over tariffs and trade restrictions. The move aligns with a growing “buy-Canadian” sentiment, which has led to the rise of apps like Buy Beaver, encouraging consumers to choose Canadian-made goods. Ford supports these efforts and warned retailers they may soon be required to clearly label Canadian and American-made products on shelves.
Ontario’s decision to ban American companies from government contracts is expected to have major consequences. While this could boost Canadian businesses, it may also create difficulties for sectors that rely on American products and services. Experts are raising concerns about potential supply chain disruptions and increased costs for the province.
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Ontario Threatens to Cut Power and Nickel Supply to U.S.
The Ontario government is taking even stronger action in response to trade tensions. Ford revealed that he is writing to officials in New York, Michigan, and Minnesota, warning them of a 25% surcharge on electricity Ontario exports to these states. He even hinted at the possibility of cutting off power altogether if trade restrictions continue.
Ontario is also considering restricting the export of high-grade nickel, a critical mineral used in manufacturing. Ford claimed that 50% of the U.S.’s supply of this mineral comes from the province. “If we have to stockpile it, if we have to ship it around the world, that’s what we’ll do,” he said.
These measures have sent shockwaves through industries. U.S. states that rely on Ontario’s electricity and nickel could face major disruptions if the province follows through with these threats. In turn, it risks straining its relationship with American trade partners, which could lead to further economic retaliation.
Ontario is making it clear that it will not back down in the trade war with the U.S. The province is willing to take strong action—even at the risk of legal battles—to stand its ground. More American companies could soon feel the impact as Ontario pushes ahead with its tough new stance.
